NITI Aayog Denies Reports Of Privatisation Of More PSBs

New Delhi: NITI Aayog, the apex public policy think tank of the Government of India, has denied reports in a section of the media regarding a supposed list of public sector banks (PSBs) that are scheduled for privatisation.

In a statement released on Friday, NITI Aayog said, “A fictitious message is being circulated in media regarding a list shared by NITI Aayog on the privatisation of Public Sector Banks. It is hereby informed that no such list as mentioned has been shared by NITI Aayog in any form.”

Notably, a section of media speculated that the government was mulling privatise a number of PSBs, including some of the country’s largest public sector banks such as the Punjab National Bank (PNB), Union Bank, State Bank of India (SBI), Canara Bank, Indian Bank and Bank of Baroda.

The government had clarified on December 19 that it would take a view on the privatisation of PSBs after consultation with the department and regulator concerned. Minister of State for Finance Bhagwat Karad, in a written reply to the Lok Sabha, noted that consideration of issues related to disinvestment and decision on selection, terms and conditions, etc., in case of strategic sale is entrusted to the Cabinet committee designated for this purpose under the Government of India (Transaction of Business) Rules, 1961.

“Before such consideration for decision thereon, consultation is undertaken with the ministries and departments concerned and, where necessary, with the regulator concerned,” Karad noted.

Reportedly, in April 2021, NITI Aayog, after consultations with the Finance Ministry, started deliberations to finalise the names of two public sector banks that would be privatised. The government think-tank was entrusted with selecting the names of two public sector banks and one general insurance company for privatisation as announced in the Budget 2021-22.