Not only LIC, but Modi govt to sell large stake in these 5 banks, which gave record profit in last quarter, they are…
Under SEBI regulations, promoters cannot hold more than 75% stake in a listed entity. However, the government currently holds stakes well above this limit in LIC and several public sector banks, and is now looking to reduce its shareholding. According to a report by Mint citing sources, merchant bankers are likely to be appointed soon for the stake sale process.
Public sector banks have recently performed strongly, delivering record profits to the government. In the June quarter, these banks reported a combined profit of Rs 44,218 crore, up 11% compared to the same period last year. How Much Stake Govt Holds In LIC?
Currently, the government holds a 96.5% stake in LIC. Three years ago, it had sold a 3.5% stake through an IPO. SEBI had set a deadline of May 2024 for LIC to meet the minimum public shareholding norm of 10%, but this was later extended to May 2027. LIC's market capitalisation stands at around Rs 5.66 lakh crore. On Monday, its shares closed 1.86% lower at Rs 895.60 on the BSE. Which Banks Stake Govt Likely To Sell?
The government's shareholding is 94.61% in Indian Overseas Bank, 90.95% in UCO Bank, 93.85% in Punjab & Sind Bank, 89.27% in Central Bank of India, and 79.60% in Bank of Maharashtra. By August next year, the government may reduce its stake in these banks to 75%. Only Bank of Maharashtra is expected to meet the deadline, while the other banks are likely to seek at least a one-year extension.
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