PSU bank shares jump: Today on January 14, a spectacular rise of up to 20 percent was seen in the shares of public sector banks. There was heavy buying in the shares of Indian Overseas Bank, Bank of Maharashtra and Punjab and Sindh Bank today. In fact, the government has approved a plan to raise funds up to Rs 10,000 crore for five public sector banks through Qualified Institution Placement (QIP) issue. The government has also approved additional stake sale through Offer for Sale (OFS).
Government will sell stake in these 5 banks
CNBC-TV18 quoted sources as saying that the government has approved the plan to sell stake in 5 public sector banks. This includes Maharashtra Bank, UCO Bank, Indian Overseas Bank, Central Bank of India and Punjab and Sindh Bank. There is a Qualified Institutional Placement (QIP) issue of Rs 2000-2000 crore for banks as well as an Offer for Sale (OFS).
According to the report, the process of raising funds will start in small phases. The Department of Investment and Public Asset Management (DIPAM) has also been ordered to sell stake through OFS to increase public shareholding. The move is in line with the government’s efforts to comply with the 25 per cent minimum public shareholding norms by August 2026. All five banks are under the administrative control of the Department of Financial Services.
How much stake does the government have now?
According to the latest shareholding pattern on BSE, the government holds 79.6 per cent stake in Bank of Maharashtra at the end of December quarter. Apart from this, the government has 98.25 per cent stake in Punjab and Sindh Bank, 96.38 per cent stake in Indian Overseas Bank, 95.39 per cent stake in UCO Bank and 93.08 per cent stake in Central Bank of India.
Today the share price of Indian Overseas Bank rose by 20 percent to reach an all-time high of Rs 54.54. UCO Bank shares also jumped by 20 percent. Shares of Central Bank rose by 20 per cent, while shares of Punjab and Sind Bank and Bank of Maharashtra saw a rise of 15 per cent and 17 per cent respectively.
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