Indian govt mulling minority stake sale in four state-owned banks: Report
New Delhi: The Indian government is mulling offloading a minority stake in four state-owned banks to meet the public shareholding rules mandated by the country's markets regulator SEBI, a government source told Reuters.
The finance ministry is expected to seek the Union Cabinet’s approval in the coming months to cut down its stakes in the Central Bank of India, Indian Overseas Bank, UCO Bank, and Punjab and Sind Bank, according to a source.
As of the end of September, the government held stakes of over 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, based on data from the BSE website.
The proposed plan involves selling these stakes through an open-market offer for sale, the source said.
While the Securities and Exchange Board of India (SEBI) mandates listed companies to maintain a minimum 25% public shareholding, government-owned firms have been exempted from this requirement until August 2026.
According to the report, the source did not clarify whether the government intends to meet SEBI's deadline or seek another extension.
The timing and scale of the stake sale will depend on market conditions, according to an official who requested anonymity, citing restrictions on speaking to the media.
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