The finance ministry is likely to seek approval of the federal cabinet in the coming months to dilute the stake in Central Bank of India, Indian Overseas Bank, UCO Bank and Punjab and Sind Bank. — Reuters
NEW DELHI: The Indian government is considering selling minority stakes in four state-run banks to comply with public shareholding norms mandated by the country’s markets regulator, a government source has told Reuters.
The finance ministry is likely to seek approval of the federal cabinet in the coming months to dilute the stake in Central Bank of India, Indian Overseas Bank, UCO Bank and Punjab and Sind Bank, the source said.
The Indian government owned 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 data on the BSE’s website.
The plan under consideration is to sell the stake through an offer for sale in the open market, the source said. The Securities and Exchange Board of India requires listed companies to maintain a 25% public shareholding, but has exempted government-owned firms from meeting these norms till August 2026. — Reuters
