The Government of India is reportedly planning to sell minority stakes in four state-run banks – Central Bank of India, Indian Overseas Bank, UCO Bank and Punjab and Sind Bank. The finance ministry is likely to seek approval of the Union Cabinet in the coming months for it. According to sources, the stake will be sold through an offer in the open market.
This move is being contemplated to comply with public shareholding norms mandated by the country’s markets regulator. The timing and the quantum of the sale would be decided as per market conditions. According to data available on the BSE’s portal, the Indian government owns more than 93% in Central Bank of India, 96.4% in Indian Overseas Bank, 95.4% in UCO Bank and 98.3% in Punjab and Sind Bank as of end-September.
According to the norms of the Securities and Exchange Board of India (SEBI), listed companies are supposed to maintain a 25% public shareholding, but government-owned firms are exempted from it till August 2026.
