According to sources familiar with the matter, state-run banks in India, such as Bank of Maharashtra and Central Bank of India, are planning to raise funds by selling shares to eligible institutional investors. This move will help the government reduce its stake in these banks.
Bank of Maharashtra is expected to raise ₹5,000 crore through a Qualified Institutional Placement (QIP), while Central Bank of India is likely to raise ₹2,000 crore through a similar route. The government currently holds an 86% stake in Bank of Maharashtra.
Shareholding of Government in Banks: The government has following shareholding in below mentioned public sector banks and aim is to decrease shareholding gradually.
| Bank | Shareholding |
| UCO Bank | 95.39% |
| Indian Overseas Bank | 96.38% |
| Central Bank of India | 93.08% |
| Punjab & Sind Bank | 98.25% |
| Bank of Maharashtra | 86.46% |
The shareholding percentage mentioned below needs to be sold so that Banks can comply with Minimum Public Shareholding (MPS). The Minimum Public Shareholding (MPS) rule is a regulation that applies to all listed companies in India. According to this rule, at least 25% of a company’s outstanding equity shares must be held by the public, which refers to non-promoter shareholders.
| Bank | Needs To Be Sold For MPS |
| UCO Bank | 20.39% |
| Indian Overseas Bank | 21.38% |
| Central Bank of India | 18.08% |
| Punjab & Sind Bank | 23.25% |
| Bank of Maharashtra | 11.46% |
The sources also mentioned that Bank of Maharashtra aims to comply with the Minimum Public Shareholding (MPS) norms by the financial years 2025 and 2026. These norms require companies to have at least 25% of their equity as public float. By raising funds through this method, the government can decrease its stake in these banks.
In addition to Bank of Maharashtra, the government also holds significant stakes in other banks, such as UCO Bank, Indian Overseas Bank, Central Bank of India, and Punjab & Sind Bank.
