Centre is likely to sell stakes in smaller public sector banks

Central government is toying with the idea of selling controlling stakes in some of the smaller public sector banks to raise funds to raise funds for spending in programmes for poor in rural , according to a Zee Business TV report, adding that the proposal is still at an early stage. 

The report further said that the proposal being considered involves extending majority stake in some of the weaker banks including Central Bank, Corporation Bank, Eco Bank, IOB and Bank of Maharashtra, and use the proceeds to fund Prime Minister Narendra Modi’s rural housing programme. 

The details in this regard are still being worked out and is likely to be discussed in a meeting of Union Finance Minister on June 20, said the Zee Business report, adding if the proposal is finalised it could be included in the Budget for 2019-20 which will be tabled in the upcoming Parliament session on July 5.

Notably, the Centre is making effort to raise massive spending on welfare programmes and revive growth after coming to power once again with a resounding mandate in the recently concluded Lok Sabha elections. 

Notably, the government will need to go ahead with an amendment of a law to enable it to sell majority control in state-run banks.

Finance Minister Nirmala Sitharaman, who is the first woman finance minister, is currently holding pre-budget consultations with the representatives of different sections of society to include measures in her maiden Union Budget 2019, to spur all-round development of India.

The maiden session of the 17th Lok Sabha commenced yesterday with Prime Minister Narendra Modi, BJP chief Amit Shah and Congress president Rahul Gandhi among the 320 of the 542 MPs took oath during the first day of the two-day long swearing-in ceremony.