GOI intend to reduce number of PSU's to just five : Reports

Govt of india is planning to reduce the number of PSUs to just five by selling majority of stakes.

The privatization of these state owned banks like Central bank of india, Indian Overseas Bank, Bank of Punjab and Maharashtra, UCO bank,  Bank of India  and Sind Bank.as the first part of plan is to sell the majority of stakes of these banks and let their Privatization. As Govt of india is set to privatise more than half of its state owned banks as part of its overhaul of the banking sector.

At present india has 12  State- owned banks the Draft is to Have 4-5 Govt-Owned banks, Said one senior government official. Such plans of proposal will be laid for cabinet approval. As government's aspiration  towards  this privatization plan to raise money by selling its assets in Non-core companies sector.

As the govt has already said that there will be no more mergers so the only recourse left to 'divest stakes' as last year the govt has merged ten state owned banks into four  but the govt plans to privatise will work well when banks may face rising bad loans because of the fall out of coronavirus. the divestment may not happen because of the unfavorable market conditions.