Govt should Go Ahead with Disinvestment Of PSU Banks: SBI Report

\ccording to a research report by the State Bank of India (SBI) on Monday, the government should proceed with the disinvestment of public sector banks (PSBs) as they are currently in good condition. The report also suggests consolidating existing government-owned banks. Click here to download SBI Research Report PDF

The report, titled ‘Prel

ude to Union Budget 2024-25,’ emphasizes the need for the government to take a stance on the disinvestment of PSBs, given their favorable condition. It also highlights the ongoing privatization of IDBI Bank, with the government and the Life Insurance Corporation of India selling nearly 61% of the lender’s stake. Click here to download SBI Research Report PDF.

The report further recommends adjustments to the tax on deposit interest, advocating for a flat tax treatment across the maturity ladder, aligning it with mutual funds and equity markets. By making deposit rates more attractive, the report suggests that household financial savings and CASA (Current Account and Savings Account) could increase, leading to additional spending and greater GST revenue for the government