India mulls reducing number of state-owned banks to five

The first part would entail the sell-off of majority stakes in six lenders.

India is considering reducing its government-owned banks to just five through privatisation as part of the overhaul of the banking sector, reports Reuters.

The first part would be the selling off of majority stakes in Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab & Sind Bank. India currently has 12 state-owned banks.

Several government committees and the Reserve Bank of India have recommended that the country should have not more than five state-owned banks.

The government is working on a privatisation plan to help to raise money by selling assets in non-core companies and sectors when the country is short of funds due to lack of economic growth caused by the pandemic.

Here’s more from Reuters.