The government was quick to sell its stake in the banks

New delhi date. 19 August 2020, Wednesday

The concerned officials have been instructed by the Prime Minister's Office (PMO) to expedite the process of reducing the government's stake in the country's public sector banks. In at least four banks, the government intends to reduce its stake in the current financial year.

Among the banks in which the government is currently seeking to reduce its stake are PNB, UCO, Bank of Maharashtra. The government has a direct or indirect stake in these banks.

Not only does the government want a complete overhaul of the banking sector, it is also keen to push for the privatization of banks. The government wants to raise money through various sources as there is a shortage of revenue in the government coffers due to the coronavirus.

The Prime Minister's Office has written a letter to the Finance Ministry instructing it to expedite the privatization process, government sources said. The process of privatization of banks has begun.

After Corona's economic impact, domestic and foreign stock markets crashed sharply in the early days but are now recovering. However, the government is not particularly sure about the response to the stake sale.

Amid the current uncertain environment, investors are increasingly looking to invest in gold. Market sources said it would be challenging for the government to sell its stake in Corona's economic impact, given the rise in banks' bad loans and the impact on profits in the banking sector.