PSUs may get more time on public stake
The Centre, currently, holds over 75 per cent in around 7 state owned banks.
New Delhi: The Centre may request Sebi to extend the August deadline for state owned banks to meet 25 per cent public float norm as it mulls various options to bring down its stake in them.
“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,” said a government official.
The Centre, currently, holds over 75 per cent in around 7 state owned banks, which include United Bank of India, Indian Bank, Bank of Maharashtra and Central Bank of India among others.
After second round of capital infusion in March, the government stake in some more banks could go beyond 75 per cent.