Is it possible that Public sector banks, like Bank of India, can be privatized in future?

What is the likelihood of that happening? According to Finance Minister, Nirmala Sitharaman, non strategic PSUs will be privatized.
Does bank come under non strategic PSUs? And if so, what is more likely? Merger to make a bigger bank or privatization?

Ref:

I dont think banks will be privatised ever. Entities like PSU Banks, LIC, GIC etc are very strategic to govt as they are the levers for any big planning in terms of spend etc. Also, using them they also control lot of their economic factors like inflation etc.

Possibility of some merger is there as these banks should have healthy balance sheet and many small banks competing withe each other does not make much sense.

2 Likes

How to log out from here?

It at the top right.

Hallo,

According to me, probability of the PSBs getting privatised is quite less as the Banks constitute the backbone of our Indian Economy. Also, they are the ones who are instrumental in furthering the mission of Financial Inclusion.

As Sir said above, they might be again merged to form still bigger banks but privatisation might not be possible as of now.

1 Like