The centre could privatise centre Bank of india and india overseas Bank (IOB) after the names of the two state – run banks were shortlisted by the government think -tank NITI Aayog, according to a report in times of india.
The report further added that Bank of india could be a potential candidate for privatisation too.
NITI Aayog had submitted the names of the Two states-run banks and one general insurer to the committee of secretaries on disinvestment.
The government think tank was tasked with zeroing in on the names of two state-run banks and one general insurer that will be privatised in the current fiscal.
The announcement regarding the privatisation of these banks was made in the union Budget of 2021-22.
The Times of india report further added that the proposal is being vetted by DIPAM and department of financial services, quoting sources.
Centre has budgeted a target of Rs1. 75 lakh crore from stake sale in the current fiscal.
It also aims to conclude the privatisation of Air india, BPCL and shipping corporation the process for which has already started in the current fiscal.
Bank of Maharashtra may see rise in customer default due to pandemic impact
State-owned Bank of Maharashtra (BOM), said the pandemic – drive slowdown in the economic activities may lead to a rise in customer defaults and its impact on the Bank will depend on the covid -19 situation going forward. There has been a Significant volatility in the global and Indian economy as the outbreak of the pandemic continues to spread , Bank of Maharashtra said in its annual report 2020-21.
The Pune -headquartered Lander said the impact of the pandemic on its result will depend upon the developments on the coronavirus front going forward , including any stimulus or regulatory packages to mitigate its impact.
“while there has been an improvement in the economic activity since the easing off the lockdown measures, the slowdown may lead to a rise in the number of customer defaults and resultant increase in provisioning” said the bank’s annual report 2020- 21.
It’s gross non-performing assets (NPAs) improve to 7.23 per cent at the of March 2021 , from 12.81 per cent a year ago. The net NPAs or bad loans were trimmed to 2.48 per cent, from 4.77 per cent by March 2020.