Privatising Bank of Maharashtra (BoM) and Punjab-Sind Bank (PSB)

Bureau,Odishabarta

DELHI:It was on expected lines that two smallest public-sector banks namely Bank of Maharashtra (BoM) and Punjab-Sind Bank were to be privatised along with IDBI Bank as announced in the Union Budget for fiscal-year 2021-22, because these two banks despite having lower business were not merged with some big public-sector banks on 01.04.2020. Both these banks are mainly regional based banks in states of Maharashtra and Punjab respectively. But central government has still not clarified the mode of privatisation of these two banks if these will be taken over by some public-sector undertaking like LIC of India got a major share-holding in IDBI Bank, or these banks will be handed over through bid or negotiation to some private corporate. Also it may be possible that shares may be floated for public for privatising these banks. Another option can be that states of Maharashtra and Punjab may take over these banks either directly or through their undertaking.

But states of Maharashtra and Punjab should now ensure that all accounts and deposits of these two states and their public-sector-undertakings (PSUs) together with salary-accounts of their employees may be compulsorily shifted to Bank of Maharashtra and Punjab-Sind Bank respectively in case these banks are to be taken over by some PSU or these states themselves. It further gives an idea to give states power to open their own banks or get controlling majority stake in some existing private or public-sector banks. Such state-controlled banks can then compulsorily have all accounts and deposits of the concerned state including those of their undertakings and salary-account of employees.

Input;Mr Subash