
The government has greenlit a ₹10,000 crore fundraising initiative for five public sector banks—Bank of Maharashtra, Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India—via Qualified Institutional Placement (QIP), according to sources shared with CNBC-TV18.
Key Details:
- Fundraising Timeline: Lenders may begin raising funds in small tranches starting Q4 FY25.
- Stake Sale Plans: DIPAM has also been mandated to facilitate stake sales through the Offer For Sale (OFS) route.
- Public Shareholding Norms: This move aligns with the government’s objective to meet the 25% minimum public shareholding requirement by August 2026.
Government Shareholding:
- Bank of Maharashtra: 79.6%
- Punjab & Sind Bank: 98.25%
- Indian Overseas Bank: 96.38%
- UCO Bank: 95.39%
- Central Bank of India: 93.08%
The government’s excess stake across these banks is valued at nearly ₹50,000 crore, based on current market prices. This initiative underscores efforts to boost public shareholding while supporting the capital requirements of these PSU banks.
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