Core Viewpoint - The Indian government emphasizes that the privatization of state-owned banks will not hinder financial inclusion and national interest, despite past nationalization efforts not fully achieving their objectives [9][10]. Group 1: Nationalization and Its Impact - Nationalization in 1969 aimed to enhance priority sector lending and government programs, but it led to unprofessional management in public sector banks [9][10]. - Despite 50 years of nationalization, the intended objectives were not completely realized, but professionalization of banks has led to better outcomes [9][10]. Group 2: Privatization Efforts - The government sold a controlling 51% stake in IDBI Bank to the Life Insurance Corporation (LIC) in January 2019, with plans for further strategic sales [6][10]. - In October 2022, the government and LIC invited Expressions of Interest (EoI) for privatizing IDBI Bank, aiming to sell a total of 60.72% stake [6][10]. - Multiple EoIs were received in January 2023, and the Securities and Exchange Board of India (Sebi) approved the reclassification of LIC as a public shareholder in August 2025 [7][10]. Group 3: Consolidation of Public Sector Banks - The government undertook a significant consolidation of public sector banks, reducing their number from 27 in 2017 to 12 by August 2019 through major mergers [8][9]. - Effective April 1, 2020, several banks were merged, including United Bank of India and Oriental Bank of Commerce with Punjab National Bank, and others with Canara Bank and Indian Bank [9].