As per Reuters report, The government of India as per government sources has selected 4 mid-sized banks for privatization to mop up revenue. Privatisation of the sector dominated by state-run lenders is deemed risky but the NDA 2.0 government wants to take it ahead with Tier-II Banks.
The four banks shortlisted for the privatization spree are Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India, two officials told Reuters on condition of anonymity. And for two of the lenders the sale process shall begin in the year FY22 which starts from April 2021.
Now in the first stage, the centre shall start the sale of small to mid and then can go up to large banks in the future course.
Nonetheless, the centre's stake in SBI will continue to be high which is deemed as a strategic bank to take ahead rural credit expansion and other such initiatives.