PSU banks overtake private banks in terms of returns in 2024

Public sector banks (PSBs) have performed better than private banks in terms of stock market returns for the period till April 19, 2024. During this period, while most of the private banks have given negative returns, PSBs have given returns ranging from 11 percent to 41 percent. During the period under review, the Nifty PSU Bank index rose by 21.35 per cent, while the Private Bank index declined by 4.34 per cent. Compared to the benchmark index, Nifty increased by 1.91 percent during this period, while Nifty Bank index declined by 1.49 percent.

Government has to sell stake in five PSU banks

As per Securities and Exchange Board of India (SEBI) regulations, the public stake in the company must be at least 25 percent within a period of three years after listing. The government currently holds more than 90 percent stake in its five banks. Therefore, the government will have to sell minority stake in these five banks – Central Bank of India, Indian Overseas Bank, Bank of Maharashtra, UCO Bank and Punjab and Sindh Bank. The government has set a deadline of August 2025 for this.