India’s latest economic survey wants government to keep control of state-owned banks
The government believes the nationalisation of banks in 1969 by former Prime Minister Indira Gandhi was a successful endeavour.
According to the Economic Survey 2019-20, "In 2019, India completed the 50th anniversary of bank nationalization. It is, therefore, apt to celebrate the accomplishments of the 3,89,956 officers, 2,95,380 clerks, and 1,21,647 sub-staff who work in Public Sector Banks (PSBs)."
While commendable, it’s a u-turn from current Prime Minister Narendra Modi’s stance on the issue. As recently at 2017, Modi claimed that government ownership of banks was a part of ‘Indira Gandhi’s drama’. In fact, he asserted that position finally allowed him the chance to undo those measures.
If the Economic Survey is any indication, finance minister Nirmala Sitharaman might announce additional capital for public sector banks instead of selling stake.