Four PSBs Seek 1-Year Extension to Comply With Shareholding Norms

At least four public-sector banks (PSBs)—Indian Overseas Bank, UCO Bank, Punjab & Sind Bank, and Central Bank of India—have approached the Department of Financial Services (DFS), seeking a one-year extension to meet the Minimum Public Shareholding (MPS) requirement.

- HARSH KUMAR

These banks have expressed their inability to meet the current deadline of August 2026 via the qualified institutional placement (QIP) route.

According to Sebi norms, listed entities must reduce promoter shareholding to 75 per cent. Of the 12 PSBs, seven have already met the MPS norms.

The current government holdings in the five PSBs are: Indian Overseas Bank (94.61 per cent), Uco Bank (90.95 per cent), Punjab & Sind Bank (93.85 per cent), Central Bank of India (89.27 per cent), and Bank of Maharashtra (79.6 per cent). According to Sebi, all listed companies must maintain an MPS of 25 per cent.