Five public sector lenders, including Bank of Maharashtra, IOB and UCO Bank are planning to reduce government stake to less than 75 per cent to comply with Sebi’s minimum public shareholding (MPS) norms, Financial Services Secretary Vivek Joshi has said. Of 12 public sector banks (PSBs), four were complying with MPS norms as on March 31, 2023. “As part of an ongoing effort, three more PSBs have complied with minimum 25 per cent public float during the current financial year. Remaining five PSBs have laid out action plans to meet MPS requirement,” he said. Currently, government holding in Delhi-based Punjab & Sind Bank is 98.25 per cent. It is followed by Chennai-based Indian Overseas Bank at 96.38 per cent, UCO Bank 95.39 per cent, Central Bank of India 93.08 per cent, Bank of Maharashtra at 86.46 per cent. As per the Securities and Exchange Board of India (Sebi), all listed companies must maintain an MPS of 25 per cent.
However, the regulator had given special forbearance to state-owned banks. They have time till August 2024 to meet the requirement of 25 per cent MPS. Joshi said banks have various options to bring down the stake, including follow on public offering or Qualified Institutional Placement.
Depending on market condition, each of these banks will take a call in the best interest of shareholders, he added. Without giving a timeline, he said, efforts were on to meet the requirement. Source: PTI