Shares of five public sector banks, including Central Bank of India, Indian Overseas Bank (IOB), UCO Bank, Punjab and Sind Bank (PSB), and Bank of Maharashtra (BOM), faced major declines during Wednesday's trading session. The Central Bank of India saw its shares drop by 6%, closing at Rs 51.55, while IOB recorded a 7% fall, ending at Rs 50.10.
UCO Bank shares tumbled over 6% to Rs 42.34, while Punjab and Sind Bank (PSB) experienced a decline of more than 5%, closing at ₹45.49. Bank of Maharashtra shares also fell over 4%, settling at Rs 50.69. The sharp fall in these public sector banks' stocks is attributed to the government's decision to sell its stake in these institutions.
Government Plans Rs 10,000 Crore Fundraise via Stake Sale in PSU BanksThe central government has reportedly approved a plan to raise ₹10,000 crore for five public sector banks through qualified institutional placement (QIP), according to media reports. The process is set to commence in smaller phases from the fourth quarter.
The Department of Investment and Public Asset Management (DIPAM) has issued an offer-for-sale (OFS) order to divest its stake in these banks, CNBC-TV18 reported. This move aims to meet the minimum public shareholding requirement of 25% in these PSU banks by August 2026.