Bank Privatisation – The central government of India has been privatizing various government agencies for some time now. Air India has been privatized a few days back. This time the decision to privatize two government banks has been taken. The fact of “Bank Privatisation” has scared the customers. The fact of “Bank Privatisation” has made the customers worried about their savings.
Apart from the telecom and travel sectors, Central Govt. has also taken the path of privatization in the banking sector. The Central Govt. have started planning with the shares of IDBI. But before that, the government sold the shares of Axis Bank.
The government has earned 3839cr by selling 1.5 percent stake in Axis Bank. Until now the shareholding was held by the Government through the Unit Trust of India (SUUTI) through a specific undertaking.
Bank Privatisation – Customers rushes to the bank to withdraw money!
The Secretary of the Department of Investment and Public Asset Management said on Twitter that through SUUTI, the Govt. gained Rs.3839Cr by selling 1.5% stake in Axis Bank. The Central Govt. has set a target of raising 65,000Cr through the sale of shares through SUUTI in the financial year 2022-23.
Till now, 28383Cr rupees have been collected through the sale of the shares. The government has sold these shares through a special offer sale with a floor price of Rs830.63 per share. As a result, the government has no more stake in Axis Bank. Although the bank claims that the customer’s money will be protected.
A minimum balance of Rs500 or Rs1000 is required to keep an account in any government bank. In the other hand, a minimum balance of Rs10,000- Rs15000 is required to keep an account in any private bank.
In case of bank privatization, service tax will be more in various cases. ATM Charge, SMS charge, Service Charge will have to spend more in different cases.
US equity firm Bain Capital sold 0.54 percent stake in Axis Bank for Rs1487 crore in the open market. Axis Bank’s net profit rose 70 percent to Rs 5,330 crore in the September. Keep visiting our website for more.
Written and edited by Rajeshwari.