Public Sector Banks Privatisation News: Big confirmation by Modi government - Check latest news update

Modi government in its Budget 2021 unveiling the PSE policy. Finance Minister Nirmala Sitharaman said barring four strategic areas, public sector companies in other sectors will be divested. The policy would give a clear roadmap for disinvestment in strategic and non-strategic sectors.

In a big development, government proposed to privatise two public sector banks (PSBs) and one general insurance company in the next financial year.

"Other than IDBI Bank, we propose to take up the privatisation of two public sector banks and one general insurance company in the year 2021-22," Finance Minister Nirmala Sitharaman said while presenting the Budget in Parliament.

The move would require legislative amendments, she said adding, "I propose to introduce the amendments in this Session itself".

Modi government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including 2 PSU banks and one insurance company, in the next fiscal year.

Sitharaman said strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, among others, would be completed in 2021-22 fiscal year beginning April 1. Also legislative amendments required for LIC IPO would be brought in 2021-22.

She said NITI Aayog has been asked to work on next list of central public sector companies for strategic disinvestment.