As is evident elsewhere, Covid 19 has pushed several projects, including many reforms planned by the government. It is now reported that the privatization of Public Sector Banks in India might not materialize in this fiscal. With the advent of Covid – 19, PSBs as well as private banks are facing an adverse impact on their financial health. Essentially, the pandemic has lowered the value of all assets, while the stressed assets are mounting.
Presently, there are four PSBs under RBI’s Prompt Corrective Action (PCA) framework. This has slowed down the banks in terms of their financial functioning, by locking their freedom over lending, management compensation as well as directors’ fees. The Indian Overseas Bank, Central Bank of India, UCO Bank and United Bank of India might not be having their best of times in hitting the private banking space.
