{"id":1002,"date":"2020-06-15T04:19:07","date_gmt":"2020-06-15T04:19:07","guid":{"rendered":"https:\/\/bengalnewstimes.com\/govt-unlikely-to-go-for-privatisation-of-public-sector-banks-this-fiscal\/"},"modified":"2020-06-15T04:19:07","modified_gmt":"2020-06-15T04:19:07","slug":"govt-unlikely-to-go-for-privatisation-of-public-sector-banks-this-fiscal","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=1002","title":{"rendered":"Govt unlikely to go for privatisation of public sector banks this fiscal"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1985240 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1985240 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1985240 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1.jpg 660w, https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/06\/nirmala-sitharaman-pti1-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">The government will refrain from distress sale of its entities, especially if they are in strategic sectors (Image: PTI)<\/span><\/figure>\n<\/div>\n<p>Privatisation of any public sector bank (PSB) during the current fiscal is very unlikely due to their low valuations and mounting stressed assets amid the COVID-19 crisis, sources said.\u00a0 At present, four public sector banks are under the <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>\u2019s Prompt Corrective Action (PCA) framework, which puts several restrictions on them, including on lending, management compensation and directors\u2019 fees.\u00a0 So, it does not make any business sense to sell these lenders \u2014 <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/indian-overseas-bank-stock-price\/\" rel=\"noopener noreferrer\">Indian Overseas Bank<\/a> (IOB), <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/central-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">Central Bank of India<\/a>, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/uco-bank-stock-price\/\" rel=\"noopener noreferrer\">UCO Bank<\/a> and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/united-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">United Bank of India<\/a> \u2014 as there will not be any suitors for them from the private banking space, the sources said.<\/p>\n<p>The government will refrain from distress sale of its entities, especially if they are in strategic sectors, they added.<br \/>Forget outright sale, hardly any public sector bank has gone for stake dilution in the last many years as valuations have been very depressed, sources said, adding the government stake in some PSBs has gone past 75 per cent due to successive capital infusions for meeting mandatory regulatory ratios.<\/p>\n<p>The COVID-19 pandemic has not only halted the process of recovery of PSBs but it is going to have an adverse impact on financial health of private sector banks too, they said.\u00a0 Sanguine about better financial health of the PSBs, Finance Minister Nirmala Sitharaman had not announced any capital infusion for them in Budget 2020-21 in February this year.<\/p>\n<p>The government, however, is following the process of consolidation of PSBs for the past few years.\u00a0 It started with the merger of State Bank of Saurashtra with its parent <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/state-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">State Bank of India<\/a> (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/state-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">SBI<\/a>) in 2008. Subsequently, State Bank of Indore was merged with SBI in 2010.<\/p>\n<p>After an over six-year hiatus, SBI again amalgamated its remaining five subsidiaries State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad along with Bhartiya Mahila Bank (BMB) effective April 2017.<\/p>\n<p>In the first three-way amalgamation, Vijaya Bank and Dena Bank were merged with <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/bank-of-baroda-stock-price\/\" rel=\"noopener noreferrer\">Bank of Baroda<\/a> from April 1, 2019 to create the third-largest lender of the country.\u00a0 A mega consolidation exercise took shape beginning April this year. As per the consolidation plan, <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/oriental-bank-of-commerce-stock-price\/\" rel=\"noopener noreferrer\">Oriental Bank of Commerce<\/a> and United Bank of India were merged into <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">Punjab National Bank<\/a>; <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/syndicate-bank-stock-price\/\" rel=\"noopener noreferrer\">Syndicate Bank<\/a> into <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/canara-bank-stock-price\/\" rel=\"noopener noreferrer\">Canara Bank<\/a>; <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/andhra-bank-stock-price\/\" rel=\"noopener noreferrer\">Andhra Bank<\/a> and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/corporation-bank-stock-price\/\" rel=\"noopener noreferrer\">Corporation Bank<\/a> into <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/union-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">Union Bank of India<\/a>; and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/allahabad-bank-stock-price\/\" rel=\"noopener noreferrer\">Allahabad Bank<\/a> into <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/indian-bank-stock-price\/\" rel=\"noopener noreferrer\">Indian Bank<\/a>. Following the consolidation, there are now seven large public sector banks, and five smaller ones. There were as many as 27 PSBs in 2017.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/govt-unlikely-to-go-for-privatisation-of-public-sector-banks-this-fiscal\/1991022\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government will refrain from distress sale of its entities, especially if they are in strategic sectors (Image: PTI) Privatisation of any public sector bank (PSB) during the current fiscal is very unlikely due to their low valuations and mounting stressed assets amid the COVID-19 crisis, sources said.\u00a0 At present, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1003,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-1002","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/06\/nirmala-sitharaman-pti1.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/1002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1002"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/1002\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/1003"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}