Working with RBI to execute bank privatisation announced in Budget: FM

peaking to reporters, Sitharaman also said the government has no plan to form any bank investment company to house the government stakes in banks.

In the union budget presented on Feb 1, Sitharaman had announced the privatisation of two banks as part of its disinvestment plan. Bank unions have opposed the move.

“The details are being worked out. I have made the announcement but we are working together with the RBI,” she said, when asked about the proposal.

She, however, declined to comment on any specific details about which will be the candidate chosen for privatisation. “We will let you know when the government is ready to announce,” she said, when pressed for details.

On the bad bank, Sitharaman said the government may have to give some guarantee for the National Asset Reconstruction Company (ARC), but stressed that this is a solution which has come from the banks itself and will also be led by them.

Sitharaman alleged the banks’ non-performing assets, which are to be transferred into the National ARC, are a legacy of the mismanagement in the past.

There is no phone banking happening now, with favours being sought for anyone from New Delhi.

On the Bank Investment Company, she said no such proposal is on the table and wondered what had resulted in the discussion.