Bank Strike: Pros and Cons after banks privatization...?
It is clear that the government is actively working to accelerate privatization in all sectors, that is, to sell public sector company shares. The government has said it does not want to insist that companies stay in even the most important sectors of the plan.
Debt relief is a prime example of this. After this, when the condition of the banks deteriorated, the government had to put its capital up and bring them up.
After nationalization, despite all sorts of reforms and repeated inflows of the state capital, the problems of these public sector banks were not completely solved. In both deposits and credit, they lag behind private sector banks and foreign banks.
At the same time, these banks are leading the way in terms of sinking credit or 'stressed assets'.
Is it a burden to the government?
The government has already invested Rs 1.5 lakh crore in banks in the last three years and more than Rs 1 lakh crore has been disbursed through recapitalization. Now the purpose of the state is clear.The government is operating under a long-term plan. Under this, the number of public sector banks has been reduced from 28 to 12 in the last few years. The government wants to reduce them further.
Some weak banks may merge with other large banks and the rest may be sold. This is the plan of the government.
This will free the state from the worry of improving their health by repaying capital in banks. This is not the first time such an idea has come up. This has been discussed many times over the last twenty years, but the matter has been embroiled in controversy.