New Delhi: The Centre is eyeing a minority stake sale in 4 public sector banks to comply with markets regulator SEBI’s norms for public shareholding. The Centre may consider a stake sale in 4 banks, namely, Central Bank of India, Indian Overseas Bank, UCO Bank and Punjab and Sind Bank. The Centre’s stake in each of these banks ranges 93-98 per cent.
The Securities and Exchange Board of India requires that public sector undertakings must have at least 25 per cent shares that are traded in public markets. However, the regulator had waived this requirement for certain entities until August 2026.
How much stake does govt own in 4 public sector banks?
Here’s the bankwise table of the government’s stake in each lender:
S. No.
Banks
Govt stake
1
Central Bank of India
93.0%
2
Indian Overseas Bank
96.4%
3
UCO Bank
95.4%
4
Punjab and Sind Bank
98.3%
The Modi government is considering a proposal to sell the shares via an offer for sale, Reuters reported, citing people familiar with the matter. It is unclear whether the Centre will be able to adhere to the deadline stated above, according to the report. The timing and quantum of the stake sale will be decided subject to market conditions, according to the person cited above.
Recently, Punjab National Bank and the Bank of Maharashtra raised funds via qualified institutional placements (QIPs). While Punjab National Bank raised Rs 5,000 crore in September, the Bank of Maharashtra raised Rs 3,500 crore in October through this method. However, this fundraising method led to a dilution in the government’s stake in these banks.
The Centre will have to dilute its stake by 20.39 per cent in UCO Bank and 21.38 per cent in Indian Overseas Bank. The government’s stake in the Central Bank of India is expected to be slashed by 18.08 per cent while in Punjab and Sind Bank the stake must be diluted by 23.25 per cent.
The Centre is eyeing a minority stake sale Central Bank of India, Indian Overseas Bank, UCO Bank and Punjab and Sind Bank, Reuters reported. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
