Business Standard

Public banks seek LIC funding as deadline to reduce govt stake to 75% nears

Most of the banks are planning to go for a qualified institutional placement to reduce the stake, and LIC would be a major subscriber of the issues, said a banker in a PSB

RBI governor is prodding banks to reduce lending rates
Premium

Namrata Acharya Kolkata
As public sector banks (PSBs) approach the deadline to reduce promoters' stake to 75 per cent, they are reaching out to LIC, which in turn can subscribe to their shares to meet regulatory norms. This is especially true for those banks that have been heavily captitalised by the government in the recent years due to their weak capital base. 

Some of the public sector banks in which government shareholding has exceeded 90 per cent include United Bank of India (96.83 per cent), UCO Bank (92.52 per cent), Allahabad Bank (92.01 per cent) and Corporation Bank (93.50 per cent), to name

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 30 2019 | 1:24 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com