Covid-19 derails privatisation of PSU banks this fiscal : Report

Low valuations and mounting stressed assets of some PSU banks due to the COVID-19 crisis, seem to have derailed the plan to privatize them during the current fiscal.

According to sources, it does not make any business sense to sell these lenders — Indian Overseas Bank (IOB), Central Bank of India, UCO Bank and United Bank of India -as there may not be any suitors for them in the current depressed scenario.

The COVID-19 pandemic has not only put a brake on the recovery process of PSBs, but it is going to adversely impact upon health of private banks too, they said.