Start with smaller banks

Govt must have a clear road map for PSB privatisation

The government has reportedly shortlisted four mid-sized to small public sector banks (PSBs), of which two will be privatised in the coming fiscal year. This is in keeping with Finance Minister Nirmala Sitharaman’s announcement in the Union Budget. The intent to privatise PSBs and a new public sector enterprise (PSE) policy in general mark a clear break from the past and will give a significant push to the overall economic reforms process. It has also been reported that the government is contemplating appointing an independent expert panel to handle overall PSE privatisation. This would again be a step in the