Bank of Queensland to buy digital lender ME bank for $1.05bn

The Indian government has reportedly shortlisted four state-owned banks for potential privatisation to increase the state revenue by selling its assets in these banks.

Based on its sources, Reuters reported that these four mid-sized banks include Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Among the four banks, Bank of India has the highest staff headcount with 50,000 employees followed by Central Bank of India with 33,000, Indian Overseas Bank with 26,000, and Bank of Maharashtra with nearly 13,000 employees.

Initially, any two banks will be put up for sale starting from the 2021-22 financial year. One of these could be Bank of Maharashtra because of its smaller workforce, according to the report.

One of the sources said that the actual privatisation process could take five to six months to start.

The Indian government’s move to start with small and mid-sized banks in its first round of privatisation aims at testing possible consequences.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

While talking to Reuters, one of the sources said: “Factors like number of employees, pressure of the trade unions and political repercussions would impact a final decision.” The source further stated that these factors could be decisive in influencing a change even at the last minute.

Sources also hinted at the possible privatisation of bigger banks in the coming years.

However, India’s largest lender State Bank of India (SBI) is to remain in state control, given its strategic need in maintaining rural credit in India, added the report.

The finance ministry has not released any official announcement on this matter.

Meanwhile, recently, India’s finance minister Nirmala Sitharaman in her budget speech unveiled plans to set up a bad bank to manage soured loans.

Sitharaman also said that the government is planning to inject $2.7bn into state-run banks from 1 April 2021.