4 Government Banks including Central Bank will be private - Process will start in 6 months

The government has chosen 4 government banks to form private banks. Of this, 3 banks are small. There is a big bank. The three small banks are Bank of Maharashtra, Indian Overseas Bank and Central Bank. While the big bank is - Bank of India. It will take 5-6 months to start the process of privatization.

4 Government Bank Privatization

The government had said to sell a share in 2 banks in the budget, the government had said to sell a share in 2 banks in the budget, but the Modi government is in favor of running only a few big state-run banks in the country. The major public sector banks in the country are State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda and Canara Bank. Out of the total 23 state-owned banks, several banks have been merged with larger banks. It also includes Dena Bank, Corporation Bank, Allahabad Bank and Syndicate Bank.

However, political parties have been spared from making public sector banks into private banks, as it also poses a threat to the jobs of millions of employees. However, the government has already said that in the event of reducing or privatizing banks, employees will not get jobs.

Bank of India
is at number six in the country, Bank of India is the number six bank in the country, while Central Bank is at number seven. They are followed by Indian Overseas and Bank of Maharashtra. The market capitalization of Bank of India is 19 thousand 268 crores, while the market cap of Indian Overseas Bank is 18 thousand crores, 10 thousand 443 crores of Bank of Maharashtra and 8 thousand 190 crores of Central Bank.

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Indian Overseas Bank was established on 10 February 1937. It has a total of 3800 branches. The Bank of India was formed on 7 September 1906. It was a private bank. In 1969, 13 other banks were merged to make it a public bank. The bank was started with 50 employees. It has a total of 5,089 branches. The Bank of Maharashtra started in 1840. At that time its name was Bank of Bombay. It was the first commercial bank in Maharashtra. It has 1874 branches and 1.5 crore customers. The Central Bank was formed in 1911. It has a total of 4,969 branches.

Fear of union opposition 

The government fears that in case of selling the banks, the banks may go against the union opposition, so it will try to sell them in turn. Bank of India has 50 thousand employees while Central Bank has 33 thousand employees. There are 26 thousand employees in Indian Overseas Bank and 13 thousand in Bank of Maharashtra. In this way, more than one lakh employees are in these four banks. Bank of Maharashtra has fewer employees, so it will be easier to make it private.

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The government will keep control of itself in big banks, the government will keep most of its stake in big banks, so that it can remain in control. The government plans to reform banks on a much larger scale after the coronary period. The government also wants to remove these banks from the NPA. In the next financial year, 20 thousand crore rupees will be infused in public banks so that they can meet the rules of banking regulator. There are some public sector banks which are still under the purview of PCA.

The Reserve Bank brings a bank to PCA when the bank's condition deteriorates and does not meet the rules. Then when the bank completes the rules it exits the PCA. During PCA, the bank cannot open new branches and cannot provide new loans.