The central government has approved a plan for five PSU banks to raise ₹10,000 crore through Qualified Institutional Placement (QIP).
These banks include Punjab and Sind Bank, Indian Overseas Bank, UCO Bank, Central Bank of India, and Bank of Maharashtra.
According to sources, the banks may begin raising funds in smaller installments starting in the fourth quarter of the financial year 2025.
Government’s shareholding will remain this much by 2026
According to a report by CNBC-TV18, the Department of Investment and Public Asset Management (DIPAM) has received instructions to sell stakes in five Public Sector Banks (PSBs) through the Offer for Sale (OFS) method.
This move aims to ensure these banks meet the minimum public shareholding requirement of 25% by August 2026.
By then, the government’s stake in these banks will be reduced to at least 25%.
These banks operate under the administrative control of the Department of Financial Services.
Government’s Stake in Banks
As per the latest BSE filing, the government holds a significant stake in various banks: 79.6% in Bank of Maharashtra, 98.25% in Punjab & Sind Bank, 96.38% in Indian Overseas Bank, 95.39% in UCO Bank, and 93.08% in Central Bank of India as of the December quarter.
The combined value of the government’s additional stake in these five banks is approximately Rs 50,000 crore, based on current share prices.
Bank Shares Trading Update
On Tuesday, the second trading day of the week, UCO Bank’s stock surged by 15%, reaching Rs 44.32, while Indian Overseas Bank’s stock rose by 19.24%, closing at Rs 54.11.
UCO Bank’s stock later climbed by 17.69%, finishing at Rs 45.45. Similarly, Central Bank’s stock increased by 18.36%, closing at Rs 55.51. Bank of Maharashtra also saw a 15% rise, with its stock closing at Rs 52.77.
