Mumbai: Finance Minister Nirmala Sitharaman on Sunday said the government will work with the Reserve Bank for execution of the bank privatisation plan announced in the budget. Speaking to reporters in the financial capital, Sitharaman also said that the government has no plan to form any bank investment company to house the government stakes in banks.
In the union budget presented last week, Sitharaman had announced the privatisation of two banks as part of its disinvestment plan. Bank unions have opposed the move.
"The details are being worked out. I have made the announcement but we are working together with the RBI," she said, when asked about the proposal.
She, however, declined to comment on any specific details about which will be the candidate chosen for privatisation.
"We will let you know when the government is ready to announce," she answered when asked about the details.
On the bad bank, Sitharaman said the government may have to give some guarantee for the National Asset Reconstruction Company (ARC), but stressed that this is a solution which has come from the banks itself and will also be led by them.
Sitharaman alleged that the banks' non-performing assets, which are to be transferred into the National ARC, are a legacy of the mismanagement in the past.
There is no "phone banking" happening now, with favours being sought for anyone from New Delhi.
On the Bank Investment Company (BIC), she said no such proposal is on the table and wondered what resulted in the discussion.
"There is no such discussion. I don't know where it is coming from. At least it is not before me. I am not discussing that," she said.
She said that there is a need for professionalisation of banks and the government is trying to ensure the same.
The minister also said that the banks are gradually getting out of the risk aversion, which had set in during the early days of the pandemic.
When asked about the ambitious divestment targets and the government's ability to push through necessary reforms to earn the projected revenues, Sitharaman exuded confidence of hitting budgetary estimates of Rs 1.75 lakh crore divestment.
Sitharaman said the government stands to get up to Rs 30,000 crore from the newly introduced agricultural infrastructure cess.
On the issue of fuel prices, and inflation there in because of the duties, Sitharaman said if the Centre lowers excise, states will increase their taxes to keep the prices at the same level and also earn some revenues.
In the union budget presented last week, Sitharaman had announced the privatisation of two banks as part of its disinvestment plan. Bank unions have opposed the move.
"The details are being worked out. I have made the announcement but we are working together with the RBI," she said, when asked about the proposal.
She, however, declined to comment on any specific details about which will be the candidate chosen for privatisation.
"We will let you know when the government is ready to announce," she answered when asked about the details.
On the bad bank, Sitharaman said the government may have to give some guarantee for the National Asset Reconstruction Company (ARC), but stressed that this is a solution which has come from the banks itself and will also be led by them.
Sitharaman alleged that the banks' non-performing assets, which are to be transferred into the National ARC, are a legacy of the mismanagement in the past.
There is no "phone banking" happening now, with favours being sought for anyone from New Delhi.
On the Bank Investment Company (BIC), she said no such proposal is on the table and wondered what resulted in the discussion.
"There is no such discussion. I don't know where it is coming from. At least it is not before me. I am not discussing that," she said.
She said that there is a need for professionalisation of banks and the government is trying to ensure the same.
The minister also said that the banks are gradually getting out of the risk aversion, which had set in during the early days of the pandemic.
When asked about the ambitious divestment targets and the government's ability to push through necessary reforms to earn the projected revenues, Sitharaman exuded confidence of hitting budgetary estimates of Rs 1.75 lakh crore divestment.
Sitharaman said the government stands to get up to Rs 30,000 crore from the newly introduced agricultural infrastructure cess.
On the issue of fuel prices, and inflation there in because of the duties, Sitharaman said if the Centre lowers excise, states will increase their taxes to keep the prices at the same level and also earn some revenues.
( Originally published on Feb 07, 2021 )
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14 Comments on this Story
 | Ameya Patil6 hours ago Privatize everything. There will be a time when the entire Parliament will be privatized atleast in formal means. All policies will be drafted in consonance of the desires of the cronies. Money Laundering will gain teeth as banking channels provide a lot of oxygen to the same. Egs of ICICI Yes Bank are just the tip of the ice berg. Crony Capitalism and exploitation of working class was the prime reason to Nationalize the banks and now the Antithesis. Mitronnn Nachooooo.... Ram Rajya is tending faster and faster.... |
| Ittvm Narayan7 hours ago Bad days come now of looting public money and flew like other unreachable Loan defaulters...Save ourselves and think twicely that govt failed to come back Malya and Nirav even after 7 yrs and good relationships with foreign countries...Govt banks serving even all socially weaker section of society not even good rich wealthy people who maintained hefty balance as compared to the private banks |
| Mitesh Jhaveri9 hours ago perfectly private banks are very fast services provider than this govt bank everytime we have to visit in bank for small things and wait for hours |