PSBs get 2 yrs more to comply with MPS rule
Out of 12 PSBs, 5 are yet to comply with MPS norms as govt’s holding is beyond 75%
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Minimum Public Shareholding
- All listed entities must maintain MPS of 25%
- Regulator gave special forbearance to PSBs till Aug 2024
New Delhi: Public-sector banks (PSBs) are expected to get another two-year extension to comply with Sebi’s minimum public shareholding (MPS) norms, a top government official has said. Out of 12 PSBs, five are yet to comply with MPS norms and the government’s holding is beyond 75 per cent. As per the Securities and Exchange Board of India (Sebi), all listed companies must maintain an MPS of 25 per cent. However, the regulator gave special forbearance to state-owned banks till August 2024 to meet the requirement of 25 per cent MPS. “We have written to the Department of Economic Affairs for the extension,” Financial Services Secretary Vivek Joshi told in an interview.
Generally, he said, a two-year extension is given and hopefully it should come sooner than later. Five banks have minimum public shareholding of less than 25 per cent. Currently, government holding in Delhi-based Punjab & Sind Bank is 98.25 per cent. It is followed by Chennai-based Indian Overseas Bank at 96.38 per cent, UCO Bank 95.39 per cent, Central Bank of India 93.08 per cent, Bank of Maharashtra (BoM) at 86.46 per cent.
It is expected that the government holding in Bank of Maharashtra could come below 75 per cent during the current fiscal, he said. However, Joshi said, the banks’ will take decision on share sale through QIP or other route depending on their capital absorption needs.
