It is reported that the Centre is planning to reduce its stake in public sector banks by 52% in the post-demonetization phase.

There are 21 public sector Banks in the country and as per reports emanating from the corridor of power in the national capital, the Centre wants to bring down the number to 10-15 by merging a few banks.

Sanjeev Sanyal, chief economic advisor of the Union Ministry of Finance, has hinted about the Centre’s above-said move at the World Economic Conference held in New Delhi recently. It may be recalled that the Centre’s earlier move to reduce its stake in PSU banks was met with stiff opposition by Bank employees’ unions.

It was then thought that the Centre abandoned its decision to reduce its stake in PSU banks but Sanyal’s statement at the Conference only brings to the fore the fact that notwithstanding the opposition from Bank employees, the Centre hadn’t changed its plans.

Keep watching this space for further updates!