Government of India planning to put Government banks for sale. This is coming via leading news portals like Times of India. As per latest news only 5 government banks will remain under government. Rest all will be transformed in private sector banks. This is a clear indication of financial crises. Government may call this a well planned strategy but as a layman we understand that someone only sells assets in hard times where there are no options available. The country is going through tough phase due to corona virus pandemic. Government has also put many public sector units for sale in recent times.
Government has also put many public sector units for sale in recent times.
Why Government selling Banks
The idea is disinvestment but the reality behind is bitter. As per some recent reports, GST collection has declined and MSME is also struggling. Due to all this government made many big announcements. With absolutely clueless initiatives and lack of vision such decisions come.
Banks for Sale in India may backfire
We do a lot of transactions via banks. We make online payments using banks. Almost everyone in India has fixed deposits. For this, people trust government banks more than private banks. Disinvestment may be an effective idea if intentions are good. With every merger we expect some job losses and there are ample examples. Just think how many government sector bank executives in the past 3-4 years. Similarly the trend may continue. The idea is to raise funds to run schemes announced by the government.
How this will impact customers
Customers may not get large impact due to this move. Therefore they need not to worry. Only their account may get transferred from bank to other. There is fair possibility that they get better service considering competition in private sector.
How this will impact bank employees
First of all the decision is not yet implemented. If implemented the work culture will change because private sector works with completely different way.
Some may also lose job via voluntary retirement schemes and other options.