PSU Bank stocks rise for 3rd day: BoM, Indian Bank, PNB gain amid DFS Secy's remark on minimum shareholding

BoM, Indian Bank, PNB among other PSU banks gain as govt rules out cutting stake below 51%.

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26 Aug, 2025 12:21

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Shares of public sector banks continued their upward momentum for the third consecutive session on Wednesday, led by Bank of Maharashtra, Indian Bank and Punjab National Bank, after a senior finance ministry official clarified that the government will retain majority ownership in state-run lenders.

M Nagaraju, Secretary, Department of Financial Services, said on September 16 that there was no proposal to reduce the government’s stake in public sector banks below 51 percent. "There is no proposal to cut government stakes in PSU banks below 51 percent. We want to be the majority shareholder," he said at the Banking Transformation Summit organised by CNBC TV18.

He also expressed confidence that public sector banks would post record profits in the current financial year.

No proposal to cut govt stake below 51%, to remain majority shareholder, says M Nagaraju, Secretary (FS)

On Wednesday, the Nifty PSU Bank index gained 1.3 percent, extending its winning streak to three sessions. The index has risen 2.27 per centover the past three days.

Bank of Maharashtra led the gains, climbing 4.36 percent to touch an intraday high of Rs 57.46 on the NSE. Indian Bank, Central Bank of India, UCO Bank and Canara Bank also advanced, rising up to 2.7 percent.

Shares of Punjab National Bank gained nearly 2 percent to an intraday high of Rs 110.48.

The rally comes amid the government’s move to divest stakes in five state-owned banks through the Offer for Sale (OFS) route. Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India and Punjab and Sind Bank have been shortlisted for partial stake sale in the coming months.

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