Govt scraps plans for PSB ETF launch this year as banks busy with mergers

No clarity yet on which banks' shares will make up ETF basket till the mergers

The Narendra Modi government has scrapped plans of launching a new financial sector exchange traded fund (ETF), at least for this year. This is because there will be no clarity on which banks’ shares will make up the ETF basket till the latest round of bank mergers is completed, several officials told Business Standard. 

This means that for the current year, the Department of Investment and Public Asset Management (Dipam) will continue depending on multiple follow-on offerings of its existing ETFs — Bharat 22 and CPSE ETF — to help meet a record divestment target of Rs 1.05 trillion for