UCO Bank, 2 More Likely to Tap QIPs Next Fiscal Year

Uco, Punjab & Sind, Indian Overseas Bank to Trim Govt Stake, Meet Sebi Rules

- Subhash Narayan & Rhik Kundu

NEW DELHI: Three state-owned banks may sell shares to financial institutions in the coming fiscal year to raise capital and increase public shareholding to the minimum levels set by the stock market regulator, two people aware of the discussions said.

The government owns over 95% in Uco Bank, Punjab & Sind Bank (PSB) and Indian Overseas Bank (IOB), with public investors holding the rest. India's minimum public shareholding (MPS) rules require all listed companies to have at least 25% public shareholding.

Depending on market conditions, the three banks may conduct several rounds of qualified institutional placements (QIPs) in FY26 as part of a phased approach to meeting regulatory requirements, the people said on the condition of anonymity.