Government to sell 8-10% stakes in 3 PSBs raising 13,000cr
The government is gearing up to sell 8-10% stakes in Punjab & Sind Bank, UCO Bank, and Indian Overseas Bank, hoping to raise about ₹13,000 crore.
This isn't just about the money: SEBI mandates a minimum public shareholding of 25% for all listed companies, and the latest relaxation from penal action for public sector banks and undertakings is valid until September 2026.
Right now, the government owns more than 90% in each of these banks, so this sale is a step toward meeting that rule.
Fines risk and 80,000cr disinvestment shortfall
If the government misses SEBI's deadline, it could face fines or even have its holdings frozen, so there's a real push to get this done.
The bigger picture: India has set a massive disinvestment target of ₹80,000 crore for this financial year but has only managed around ₹13,389.42 crore so far (including recent sales like Central Bank of India).