The government on Monday said it will take a view on privatisation of public sector banks (PSBs) after consultation with the department and the regulator concerned.
Consideration of issues related to disinvestment and decision on selection, terms and conditions, etc. in case of strategic sale is entrusted to the Cabinet committee designated for this purpose under the Government of India (Transaction of Business) Rules, 1961, minister of state for finance Bhagwat Karad said in a written reply to Lok Sabha.
“Before such consideration for decision thereon, consultation is undertaken with the ministries and departments concerned and, where necessary, with the regulator concerned,” he said.
In the Union Budget for FY22, he said, government’s intent to take up privatisation of two PSBs and approval of a policy of strategic disinvestment of Public Sector Enterprises (PSEs) was announced.
In reply to another question, Karad said, the gross NPAs of PSBs have declined to ₹5.40 lakh crore (Gross NPA ratio of 7.28%) as on March 31, 2022 compared with ₹8.95 lakh crore in 2018. In the last five financial years, he said, the PSBs have made an aggregate recovery of ₹4,80,111 crore from NPA accounts and upgradation of NPAs of ₹1,45,356 crore. This is consequent to government’s strategy of recognition, resolution, recapitalisation and reforms, he said.