look news india
Government stake in public sector banks: The government is planning to sell stake in four public sector banks. The government plans to sell minority stake in these banks under public shareholding rules. Citing a government source, Reuters has claimed that in the coming months, the Finance Ministry of the Government of India may seek approval from the Central Government to reduce stake in Central Bank of India, Indian Overseas Bank, UCO Bank and Punjab and Sindh Bank. Is.
How much stake does the government hold in which bank?
According to the data given on the BSE website, as of the end of September, the Government of India holds more than 93 percent stake in Central Bank of India, 96.4 percent in Indian Overseas Bank, 95.4 percent in UCO Bank and 98.3 percent in Punjab and Sind Bank. . Reuters also claimed that the plan is considering selling the stake through an offer for sale in the open market. Let us tell you that 25 percent public shareholding is mandatory in companies listed by the Securities and Exchange Board of India (SEBI). But government-owned companies have been exempted from fulfilling these rules till August 2026.
When will the stake be sold?
However, no information was given whether the government will sell the bank’s shares within the time limit set by SEBI or will it ask for more time to extend the deadline of this rule? An official, who did not wish to be named, said the timing and amount of the sale would be decided based on market conditions. No information was given in this regard by the Finance Ministry also.
These banks raised money through QIP
Recently public sector banks have launched Qualified Institutional Placement (QIP) to raise capital. Due to this the government’s stake in public sector banks has reduced. Let us tell you that in the month of September, Punjab National Bank had raised Rs 50 billion through QIP. Apart from this, in October, Bank of Maharashtra had raised Rs 35 billion through QIP.
