Additionally, it insisted that the hiring of merchant bankers to supervise the transactions is nearing completion, suggesting that the process is accelerating.
The sources that for the next six months, the government intends to sell up to 20% of its shares in five public sector banks (PSBs): Indian Overseas Bank (IOB), Punjab & Sind Bank, Central Bank of India, Bank of Maharashtra, and UCO Bank. The Offer for Sale and Qualified Institutional Placement (QIP) routes will be used to carry out the share sales.
In the case of UCO Bank, for example, the Center hopes to raise Rs 2,500 crore by selling up to 10% of the company. To meet the capital and operating needs of the individual banks, the money earned from the sale of PSB stakes will be utilized.
This action is a component of the government's plan to decrease direct ownership in state-owned banks while simultaneously strengthening their balance sheets. In her 2021–22 Budget speech, Finance Minister Nirmala Sitharaman had previously declared that the government would pursue the privatization of two PSBs in addition to IDBI Bank.
According to information on the BSE website, as of the end of September, the Indian government owned over 93% of Central Bank of India, 96.4% of Indian Overseas Bank, 95.4% of UCO Bank, and 98.3% of Punjab and Sind Bank. Listed corporations must maintain a 25 percent public shareholding, according to the Securities and Exchange Board of India (SEBI); however, government-owned businesses are exempt from these requirements until August 2026.
