InvestorQ : Is it true that the government will trim its stake in IDBI Bank and Bank of Maharashtra this year?
rhea Babu made post

Is it true that the government will trim its stake in IDBI Bank and Bank of Maharashtra this year?

Answer
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Riya Dwivedi answered.
2 months ago


That is correct and the government is planning to actually divest 4 PSU banks in this financial year. The four likely divestment candidates include Punjab & Sind Bank, Bank of Maharashtra, UCO Bank and IDBI Bank.

Recently, the PMO had written the finance ministry asking to expedite the process of privatising the above four lenders in the current financial year so as to meet the divestment targets for the fiscal year 2021. The elaborate process has already started.

However, there are apprehensions that the government's timeline may be aggressive in the current market conditions. India has a larger plan to privatize most of its banks and reduce the government owned lenders to just five.