The Indian government holds just a 57.6% stake in the country's largest lender State Bank of India (SBI), and the highest 98.25% stake in Punjab & Sind Bank as of March 2022, the Rajya Sabha was informed. Ten years ago, the government's stake in SBI was 61.58%, which has come down to 57.59% as of March 2023.
Responding to a question on the privatisation of public sector banks (PSBs), Dr Bhagwat Karad, minister of state for finance, says the policy for privatisation of two PSBs was announced in the Union Budget for FY23. "...the objectives of the policy include enablement of growth of public sector enterprises through infusion of private capital, thereby contributing to economic growth and new jobs, and financing of social sector and development programmes of the government."
Priyanka Chaturvedi, a member of Parliament (MP), has asked whether the Union government has any plans to dilute its share in PSBs.
While sharing the shareholding pattern of PSBs, Dr Karad clarified that "banks raise equity capital from the market through qualified institutional placements and other routes, which results in dilution of the percentage shareholding of the government of India."
Sr. No. | Name of the Bank | % age of Shareholding |
1 | Bank of Baroda | 63.97 |
2 | Bank of India | 81.41 |
3 | Bank of Maharashtra | 90.97 |
4 | Canara Bank | 62.93 |
5 | Central Bank of India | 93.08 |
6 | Indian Bank | 79.86 |
7 | Indian Overseas Bank | 96.38 |
8 | Punjab National Bank | 73.15 |
9 | Punjab & Sind Bank | 98.25 |
10 | State Bank Of India | 57.59 |
11 | Uco Bank | 95.39 |
12 | Union Bank of India | 83.49 |
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