New Delhi : The Finance Ministry may request capital market regulator Sebi to extend the August deadline for PSBs to meet 25 per cent public float norm as it mulls various options to pare government stake in state-run banks.
There are seven public sector banks (PSBs), including United Bank of India, Indian Bank, Bank of Maharashtra and Central Bank of India, where the government holding is above 75 per cent.
Post second round of capital infusion in March, the government stake in some more banks could go beyond 75 per cent.
As per guidelines of the Securities and Exchange Board of India (Sebi), government stake in PSUs should be 75 per cent or less by August 2017, reports PTI. “Effort is there to meet the Sebi’s public float guidelines but in case some banks are unable due to market condition, then we will approach the regulator seeking exemption from minimum public shareholding (MPS) requirement of 25 per cent in those cases,” a Finance Ministry official said. There are still five months to go and various options are on the table, like public offer and selling stake to LIC, the official added. There are four PSU banks where government holding is more than 80 per cent, while it is between 75-80 per cent in three lenders as of December 2016. Government holding in United Bank of India is at 88.72 per cent, followed by Indian Bank (82.10 per cent), Bank of Maharashtra (81.61 per cent), Central Bank of India (81.28 per cent), Punjab and Sind Bank (79.62 per cent), Indian Overseas Bank (79.56 per cent) and Uco Bank (76.67 per cent).
