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Monday, 15 February 2021

4 Government banks will be privatized: Bank of Maharashtra, Bank of India, Indian Overseas Bank and Central Bank will be privatized, the process will start in 6 months.

4 Government banks will be privatized: Bank of Maharashtra, Bank of India, Indian Overseas Bank and Central Bank will be privatized, the process will start in 6 months.







The government has selected 4 state-owned banks to become private banks. 3 of these banks are small banks. Is a large bank. The three smaller banks are Bank of Maharashtra, Indian Overseas Bank and Central Bank. While the big bank is Bank of India. Its privatization process will take 5-6 months to start.

 

The government had in the budget talked of selling stakes in two banks, though the Modi government is in favor of running some of the largest state-owned banks in the country. The major government banks in the country are State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda and Canara Bank.






However, the political parties have been avoiding making the government bank a private bank, as it puts the jobs of millions of employees at risk. However, the government has previously said that in the event of downsizing or privatization of the bank, the employees will not lose their jobs.






Bank of India is ranked sixth in the country Bank of India is the sixth largest bank in the country, while the Central Bank is the seventh largest. This is followed by Indian Overseas Bank and Bank of Maharashtra. Bank of India has a market capitalization of Rs 19,298 crore. While Indian Overseas Bank has a market cap of Rs 18,000 crore, Bank of Maharashtra Rs 10,443 crore and Central Bank Rs 8,190 crore.





Indian Overseas Bank was established on February 10, 1937. It has a total of 3800 branches. Bank of India was established on September 7, 1906. It was a private bank. In the year 1969, it was merged with 13 other banks to form a government bank. The bank was started with 50 employees. Bank of Maharashtra was started in the year 1840. At that time its name was Bank of Bombay. At that time the name of this bank was Bank of Bombay. It was the first commercial bank in Maharashtra. It has 1874 branches and 1.5 crore customers. The Central Bank was established in the year 1911.




Fear of union protests The government fears that in the event of the banks being sold, the bank unions may go on strike. This position will try to sell the banks periodically. Bank of India has 50,000 employees. While the central bank has 33 thousand employees. Indian Overseas Bank has 26,000 employees and Bank of Maharashtra has 13,000 employees. Thus, there are more than one lakh employees in these four banks. Bank of Maharashtra has fewer employees, so it will be easier to privatize it.

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