Approval expected for four state-owned banks to raise funds in H1 FY25

The The central government is contemplating allowing at least four state-owned banks to raise funds or expand their public float in the first half of the upcoming financial year (FY25) to enhance their lending operations and encourage greater public involvement.

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Among the four banks, PNB is targeting a follow-on public offer (FPO) by September, while Central Bank of India is seeking approval for an offer for sale (OFS) to broaden its public float.

The government has reportedly received a proposal from the Central Bank of India for an offer for sale, with the government currently holding a 93.08 per cent stake in the state-owned lender.

Additionally, some banks may have already received approvals from their boards while others are preparing their fundraising proposals.