The government is aiming at privatising over half of its state-run lenders and lowers the count of state run banks to just five.
In the first phase, there shall be major stake sale in Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab & Sind Bank. At present, India has 12 state-owned banks. The plan for this shall be put in a new privatization proposal the government is preparing and then put before the Cabinet for approval.
Earlier, the government merged 10 PSBs into 4, leading to a creation of just a handful of large banks.
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