In the winter session of Parliament, Shri Rahul Gandhi asked the Government of India whether there is any proposal to privatise PSU Banks other than IDBI Bank. The government said NO.
Shri Rahul Gandhi asked – whether the Government proposes to privatise additional PSBs and if so, the details thereof along with the rationale for privatising profit-making Public Sector Banks.
The Government replied – No Sir. There is no such proposal at present.
Then, he asked whether the Government has undertaken any assessment of the impact of privatisation on existing employees, depositors and public accountability. To this, the government said – The analysis of the impact of strategic disinvestment/ privatization on performance of select Central Public Sector Enterprises (CPSEs) (11 companies) was carried out in Chapter 9 of the Economic Survey (2019-20). This shows that the privatized CPSEs, on an average, performed better post-privatisation then their peers in terms of net worth, net profit, return on equity, return on assets, gross revenue, net profit margin, sales growth and gross profit per employee.
For IDBI Bank, the Government of India has confirmed that the strategic disinvestment (sale of stake) in IDBI Bank is officially underway. The Government informed that the Cabinet Committee on Economic Affairs had approved the plan in May 2021. The sale covers 60.72% of IDBI Bank’s shares, which are jointly held by: LIC of India: 30.24% (After sale, LIC will hold 19%), Government of India: 30.48% (After sale, Govt will hold 15%).
This means that the privatisation of IDBI Bank is confirmed whereas other public sector banks will be merged as of now.
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