Government will reduce stake by selling shares in Bank of Maharashtra, know what is the whole matter
Bank of Maharashtra Nidhu Saxena, CEO and Managing Director, said on Monday that the condition of a minimum public stake of 25 percent would be met after another phase of raising capital in the current financial year. Saxena said on the occasion of Fibac organized by FICCI and Indian Banks Union that another phase of stock sales will help the bank to reduce capital adequacy and government’s share. The Finance Ministry has asked five banks in the public sector to increase the public shareholding limit to 25 percent by 1 August 2026.
At least 25 percent public shareholding in all listed companies
This is in line with the Securities and Exchange Board of India. According to this, all listed companies including public sector companies should have minimum 25 percent public shareholding. Capital market regulator SEBI has exempted central public undertakings and financial institutions of Public sector till August 2026. Currently, the government holds 79.6 percent stake in Bank of Maharashtra in Pune. Saxena said that according to the bank’s current market capitalization, if the bank raises around Rs 2000-2500 crore, the government’s stake will fall below the 75 percent level.
Bank of Maharashtra has got approval to raise Rs 7500 crore
He said that the bank has taken approval to raise Rs 7500 crore through loan and equity. Public sector Bank of Maharashtra raised Rs 3500 crore in October through QIP (eligible institutional planning). As a result, the public stake in the bank increased from 13.5 percent to 20.4 percent from the end of September. According to Saxena, the bank has not yet decided whether the capital eligible will be raised through institutional planning or through a sales offer. The bank is still evaluating the situation.
Which bank has the highest share of the government
Bank of Maharashtra is comparatively in good condition among the 5 public sector banks where the government has to reduce its stake in banks. The government holds 94.6 percent in the Indian Overseas Bank, 93.9 percent in Punjab and Sindh Bank, 91 percent in UCO Bank and 89.3 percent in Central Bank of India.
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