Top 10 advisory companies in Indore Centre puts 8 public sector banks on the first stake sale list

The government is considering diluting its stake on a priority basis in eight banks where its shareholding is above 75%, as it mulls ways to gather resources to boost the capital base of public sector banks (PSBs) struggling with massive bad assets, reports The Financial Express. While market conditions will play a crucial role in the stake sale plan, the government would first like to see its share trimmed below 75% in certain PSBs to achieve the twin goals of raising funds for recapitalization and complying with the minimum (25%) public-float norm.

As of end-September, the government held more than 75% in eight PSBs — United Bank of India, Indian Bank, Bank of Maharashtra, Central Bank of India, Punjab and Sind Bank, Indian Overseas Bank, UCO Bank and Bank of India.

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