Govt To Sell Stake In These Four Banks - Details

Stake Sale:  central government is considering selling minority stakes in four state-run banks to comply with public shareholding norms mandated by country's markets regulator, a government source told Reuters.

finance ministry is likely to seek approval of federal cabinet in coming months to dilute stake in Central Bank of India, Indian Overseas Bank, UCO Bank, and Punjab and Sind Bank, source said.

government owns more than 93 per cent in Central Bank of India, 96.4 per cent in Indian Overseas Bank, 95.4 per cent in UCO Bank and 98.3 per cent in Punjab and Sind Bank as of end-September, according to data on BSE's website.

plan under consideration is to sell stake through an offer for sale in open market, source said.

Securities and Exchange Board of India ( SEBI ) requires listed companies to maintain a 25 per cent public shareholding, but has exempted government-owned firms from meeting se norms till August 2026.

source did not comment on wher government will be able to meet regulator's deline or wher it would seek a furr extension.

official said timing and quantum of sale would be decided based on market conditions. official did not want to be named as he is not authorised to speak to media.

India's finance ministry did not immediately respond to a request for comment.

In past, public sector banks have launched qualified institutional placements (QIP) to raise capital which has in turn lowered government's stake in state-run banks.

Punjab National Bank raised 50 billion rupees through a QIP in September, while Bank of Maharashtra raised 35 billion rupees in October.

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