Govt may sell Minority Stakes in 2 PSU Banks this Financial Year

As per reports, the Government of India may sell some stake in two public sector banks in India. The government might sell minority stakes in select PSU banks via offer-for-sale route in the current financial year, as per a report by NDTV Profit.

At least two banks are likely to float shares in the first round of stake sales this year. Merchant bankers and advisors have been working on the process since August. “Meaningful progress” is expected this fiscal, sources said.

The government plans to sell minority stake in Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India and Punjab & Sind Bank. In total, the government plans to sell about 20% equity in a phased manner.

The central government’s shareholding will be brought below 75% in each of the banks.

DFS Secretary also said the same

DFS Secretary M. Nagaraju said that the Indian government is moving ahead in completing the stake sale in IDBI Bank before the end of the current financial year. He also said that the government is also planning for divestments in other state-run banks through offer-for-sale mechanisms within the same timeframe.

In addition to IDBI Bank, the government also plans to offload up to 20% of its stake in five public sector banks over the next four years.

The five banks targeted for phased disinvestment are Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India, and Punjab and Sind Bank. In each of these institutions, the government plans to gradually reduce its stake to below 75%.