The Central government is planning to sell minority stakes in four state-run banks to comply with public shareholding norms set by the Securities and Exchange Board of India (SEBI), according to a government source.
Banks Under Consideration
The government may sell its stake in these four public sector banks:
- Central Bank of India
- Indian Overseas Bank
- UCO Bank
- Punjab and Sind Bank
The government aims to secure cabinet approval in the coming months for the sale, which is expected to be conducted through an offer for sale (OFS) in the open market.
Regulatory Compliance
As per SEBI regulations, listed companies must maintain at least 25% public shareholding. However, government-owned companies have been granted an exemption until August 2026. The source did not confirm whether the government would meet this deadline or seek an extension. Timing and sale volume will depend on market conditions.
Government Shareholding in Banks
- State Bank of India (57.54%)
- Punjab National Bank (70.08%)
- Bank of Baroda (63.97%)
- Canara Bank (62.93%)
- Union Bank of India (74.76%)
- Indian Bank (73.84%)
- Bank of India (73.38%)
- Central Bank of India (93.08%)
- Indian Overseas Bank (96.38%)
- UCO Bank (95.39%)
- Bank of Maharashtra (86.46%)
- Punjab and Sind Bank (98.25%)