Centre readies plan to sell up to 20% in five public-sector banks

Govt may consider both OFS and QIP routes for diluting its stake

To dilute up to 20 per cent of its stake in each of five public-sector banks (PSBs) over the next four years, the Union government is developing a road map in consultation with the Department of Investment and Public Asset Management (Dipam), the Department of Financial Services (DFS), and state-run lenders, according to a senior government official.

 

“This will be done to comply with the Securities and Exchange Board of India’s (Sebi’s) minimum public-shareholding norms. While market conditions will be considered, the government plans to use both the offer for sale (OFS) and qualified institutional placement (QIP) routes for stake