These four PSU Bank shares gain after DFS Secretary remarks on minimum shareholding
Published on 17/09/2025 09:20 AM
These four PSU Bank shares gain after DFS Secretary remarks on minimum shareholdingThe DFS secretary, M Nagaraju, also clarified that there is no proposal before the Centre to reduce its stake in PSU Banks below 51%.By Shloka Badkar September 17, 2025, 9:20:13 AM IST (Updated)2 Min ReadShares of four public sector undertaking (PSU) banks - Indian Overseas Bank, Punjab and Sind Bank, UCO Bank and Central Bank of India, gained on Wednesday, September 17, after M Nagaraju, secretary of the department of financial services (DFS), said that four state-run lenders will be raising capital this year to be compliant with the Securities and Exchange Board of India's (SEBI) minimum public shareholding (MPS) norm.
Of the 12 PSU banks, the four lenders highlighted above, have government stake near or in excess of 90% at the end of the June quarter.
PSU BankGovt shareholdingPublic shareholdingIndian Overseas Bank94.61%5.39%Punjab Sind Bank93.85%6.15%UCO Bank90.95%9.05%Central Bank of India89.27%10.73%
All of these lenders raised between ₹1,500 crore to ₹2,000 crore recently through a QIP, which resulted in negligible dilution of the government's stake.
"We need capital. This year, we are going to raise capital for four banks to also meet the SEBI guidelines of below 75% public shareholding. So that is one way of raising funds, so that when the capital is there, we will be able to lend more," Nagaraju said at CNBC-TV18's Banking Transformation Summit on Tuesday, September 16.
He added that credit growth has also been very high due to last year's profits. "We are very confident, given the low inflation numbers and the availability of liquidity in the system, that we want to lend more. That is the message we want to give to the country," he said.
The DFS secretary also clarified that there is no proposal before the Centre to reduce its stake in PSU Banks below 51%. “They will continue to be majority-owned by the government, because there is a public interest in the government owning a majority in public sector banks," he said.
Shares of IOB, Central Bank of India, PSB, and UCO Bank ended the previous session were trading up to 1% higher around 9.20 am on Wednesday.
Also Read: Motilal Oswal nearly exits this underperforming auto component player on Tuesday via block dealsContinue ReadingFirst Published: Sept 17, 2025 7:54 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsCentral Bank of IndiaIndian Overseas BankPunjab & Sind BankSEBIshare market todayUCO Bank