Bank of India, Central Bank, Indian Overseas Bank and Bank of Maharashtra will be privatized.
What's in the article
- Brief information
- Why these 4 banks will be made private
- What will happen to the account holder after privatizing the banks?
- What will happen to employees after privatizing banks?
- What will be the effect on big banks to make banks private?
- How will these four banks be private?
- What is the status of these four banks in the market?
- When were these four banks established?
Brief information
The Government of India has recently decided that 4 banks in India will be privatized. These four banks are Bank of India, Central Bank, Indian Overseas Bank and Bank of Maharashtra respectively. The process of privatizing banks will begin in five-six months. The government will first privatize the smallest bank and gradually these four banks will be privatized. The biggest bank among these four is Bank of India. Total of these four banks is 122000 employees.
Why these 4 banks will be made private
The Government of India wants to run only a few large state-run banks. The Government of India wants to run only large public sector banks. Which includes State Bank of India (SBI Bank), Punjab National Bank (PNB Bank), Bank of Baroda and Canara Bank. The first total in India was 23 state-owned banks. Which have already been merged with big banks. In the recently introduced budget of 2021, two banks have said to sell the accounts. But according to the information, the names of 4 banks have been revealed.
What will happen to the account holder after privatizing the banks?
Let the account holders who have accounts in these 4 banks tell that there is no risk to their money. You can easily pick up the case from your account and deposit it easily. After getting these banks in big banks, the work of account holders will become easier because it is easier to raise and deposit cases from big banks. However it may be a problem that in the first government bank there was a minimum amount of one thousand rupees, which is ₹ 10000 minimum amount in many big banks.
What will happen to employees after privatizing banks?
Every political party is afraid of merging banks into big banks because by doing so many employees may be unemployed. But the present government has clearly stated that no employee will be removed from office. He will be given employment. Even after these banks are privatized, those employees will not be fired. The largest bank among inter banks is Bank of India which employs 50000 employees. Similarly, there are 33000 employees in Central Bank and 26000 employees in Indian Overseas Bank and 13000 employees in Bank of Maharashtra. If these four banks are analyzed, currently more than 100000 employees are working in these four. All these employees will not be removed from the job and given regular workload.
What will be the effect on big banks to make banks private?
The government plans to reform banks in a big way. Under this, it will retain most of its stake in large public sector banks, so that it can remain in control. The government also wants to remove these banks from non-performing assets. In the next financial year, 20 thousand crore rupees will be infused in public banks so that they can meet the rules of banking regulator.
How will these four banks be private?
The process of privatization will take 5-6 months to begin. 2 out of 4 banks will be selected for privatization in this financial year. The government fears that in the event of selling the banks, the bank unions may go on protest, so it will try to sell them in turn. Bank of Maharashtra has fewer employees, so it will be easier to make it private.
What is the status of these four banks in the market?
Bank of India is the number six bank in the country, while the central bank is at number seven. They are followed by Indian Overseas and Bank of Maharashtra. The market capitalization of Bank of India is 19 thousand 268 crores, while the market cap of Indian Overseas Bank is 18 thousand crores, 10 thousand 443 crores of Bank of Maharashtra and 8 thousand 190 crores of Central Bank.
When were these four banks established?
- The Bank of Maharashtra started in 1840. At that time its name was Bank of Bombay. It was the first commercial bank in Maharashtra. It has 1874 branches and 1.5 crore customers.
- The Bank of India was formed on 7 September 1906. It was a private bank. In 1969, 13 other banks were merged to make it a public bank. The bank was started with 50 employees. It has a total of 5,089 branches.
- The Central Bank was formed in 1911. It has a total of 4,969 branches.
- Indian Overseas Bank was established on 10 February 1937. It has a total of 3800 branches.