Bank of Maharashtra, IOB among 5 PSBs planning to cut govt stake to meet Sebi norms

Five public sector lenders, including Bank of Maharashtra, IOB and UCO Bank are planning to cut 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.

Out 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.

Public sector banks have time till August 2024 to meet the Securities and Exchange Board of India (Sebi) requirement.

The Minimum Public Shareholding (MPS) norm mandates at least 25 per cent public float for all listed companies. 
A blanket exemption was given to some PSUs from MPS till August 2024.

The twelve PSBs are: State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Central Bank of India, Canara Bank, Union Bank of India, Indian Overseas Bank, Punjab and Sind Bank, Indian Bank, UCO Bank, and Bank of Maharashtra.

According to the rule, companies are required to have a public shareholding of at least 25 per cent within three years of being listed.