<\/p>\n
In each of the \u2018strategic sectors\u2019 a maximum of four state-run players will be allowed. List for the same will soon be submitted to the cabinet for clearance.<\/p>\n
The government may either coalesce the remaining five PSBs (Bank of India, Union Bank, Indian Overseas Bank<\/a>, Central Bank and Indian Bank<\/a>), with the four major banks it chooses to retain or snip 26% of its stake in them over a stipulated time-frame, before full time existence, as stated by the NITI Aayog proposal.<\/p>\n PSBs might be in need of massive capital infusion once the validity of various regulatory relaxations are over which highlights the urgency to privatise most of the PSBs. The Government\u2019s need to infuse capital year after year to keep weak PSBs afloat will not be required after their privatization. <\/p>\n The Centre had to infuse upto Rs 3.2 lakh crore to stabilize the capital base of the bad loan-saddled PSBs between FY15 and FY20. Irrespective of that, their market capitalisation has abraded slowly and substantially in recent years way before the pandemic could be blamed for it.<\/p>\n<\/div>\n