Time to push divestment of state-owned banks: SBI report

New Delhi, July 8

The government should go ahead with disinvestment of public sector banks (PSBs) as they are in good condition, SBI said in its research report on Monday.

The report also pitched for the consolidation of existing government-owned banks. “As banks are in good condition, the government should take stance on disinvestment of PSBs,” the report titled ‘Prelude to Union Budget 2024-25’ said.

With regard to the privatisation of IDBI Bank, it said the government and Life Insurance Corporation of India are selling an almost 61 per cent stake in the lender.

“They invited bids from buyers in October 2022. In January 2023, the Department of Investment and Public Asset Management received several expressions of interest for the IDBI Bank stake on offer. We expect the government to clarify this in the Budget,” it said.

At present, the government owns over 45 per cent stake in IDBI Bank, and LIC has a 49.24 per cent shareholding.