Govt to privatise two PSBs and insurance firms, LIC IPO slated for FY22

Asset reconstruction company to take over all stressed assets from bank books, manage it before selling it further to private parties such as distressed assets funds

The government will start the process of privatisation for two more public sector banks, other than IDBI Bank, and two insurance companies in financial year 2021-22, Finance Minister Nirmala Sitharaman said in her budget speech on Monday.  

Life Insurance Corporation of India (LIC) will go for an initial public offering in 2021-22 as well, she said.  

This asset reconstruction company (ARC), or asset reconstruction management company will take over all stressed assets from bank books and manage it before selling it further to private parties such as distressed assets funds, to unlock value.  

The idea of a bad bank was in discussion for