There are 3 types of commercial banks, the Public/ Government bank, the Private sector bank and the foreign sector bank. Governments hold more than 50 percent of share in certain banks known as Public Banks are as follows:
The former list of Govt banks in India were
- Allahabad Bank
- Andhra Bank
- Bank of Baroda
- Bank of India
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank
- Oriental Bank of Commerce
- Punjab & Sind Bank
- Punjab National Bank
- Syndicate Bank
- UCO Bank
- Union Bank of India
- United Bank of India
- Vijaya Bank
- IDBI Bank((77.79% government stake)
- SBI+and it’s five associate Banks
- Bharatiya Mahila Bank
Now the questions arise why government want to privatize the public bank?
Bank Privatization Issues In Details
After demonetization and Covid-19 pandemic the revenue collection had fallen down. Lots of business had shut down and no one have enough savings to start a new business and take a risk. Outcome of this Fuel price rise, LPG price rise, and sale/rent/lease of public property started.
Now let’s see the Public accusation regarding Bank Privatization:
- Government no longer control over the bank policy as we already seen when government stop control petrol price how it’s hiking every now and then.
- Government job security will demise and no government job benefits like work-paid leave, bonus, maternity leave, work duration etc. we all knew about how employee being exploited in private sectors.
- Poor Public cannot get cheap interest loan. Now on Bank became the puppet of rich and white collar People.
- People afraid that Bank turn into a monopoly market beside perfect competitive market. As some private bank take control the liquid capital.
Now analysis the Government point of view regarding Bank Privatization:
- Bank gets more equity.
- Interest of the employee will be protected.
- Government not liable for securitized for bank bad debt. Free for all expenses to manage structure of banking sectors.