The government may defer the sale of two public sector banks to next financial year as the procedural process will take time.

The government has not yet sought the parliament’s approval to change the laws required to start the transaction.

The Finance Ministry hasn’t finalised modalities to seek approval from lawmakers for the sale. This leaves little time for the process to be completed this year, Bloomberg quoted sources as saying.

Indianbankingnews.com had earlier reported that while the process for sale of IDBI Bank had begun years ago, the privatisation of two state-run banks would take time as the procedures had not even started. The government is yet to name the two public sector banks which are to be put up for sale.

In her 2021-22 budget presentation in February, Finance Minister Nirmala Sitharaman had said that two public sector banks and one state-run general insurance company would be privatised by March 2022. IDBI Bank would also be sold, she had said.

The government expects to meet its ambitious divestment target of Rs 1.75 lakh crore this financial year through share sales in Air India, Bharat Petroleum, IDBI Bank, Shipping Corporation of India, Container Corporation of India, Pawan Hans, BEML and Neelachal Ispat Nigam, as well as the listing of Life Insurance Corporation of India (LIC).