PSB: Plan to reduce Centre's stake, five government banks will bring it below 75%
Four of the 12 public sector banks (PSBs) have already complied with public shareholding norms by Thursday, March 31, 2023, Financial Services Secretary Vivek Joshi said. Three more PSBs have completed a minimum of 25 per cent MPS compliance in the current financial year. The remaining five public sector banks plan to meet the MPS norms.
The Indian Overseas Bank (IOB), Bank of Maharashtra, UCO Bank, and other five public sector banks intend to lower the Center's stake to less than 75%. To adhere to the Securities and Exchange Board of India's (SEBI) minimum public shareholding (MPS) regulations, banks are preparing this programme.
By March 31, 2023, four of the twelve public sector banks (PSBs) will have complied with public shareholding requirements, according to Financial Services Secretary Vivek Joshi's announcement on Thursday. In the current fiscal year, three more PSBs fulfilled the MPS compliance requirement with a minimum of 25%. The five public sector banks that are left intend to adhere to the MPS standards.
Joshi said, regulator SEBI has given special exemption to public sector banks. They have time till August 2024 to meet the rule of 25 per cent public shareholding. Depending on the market situation each of these banks will take decisions in the best interest of the shareholders.
