Department of Financial Services Secretary M Nagaraju said on October 7 that the divestment in the state-owned banks via offer for sale (OFS) is on track and will be completed by the end of the current financial year.
“On track to complete PSU banks divestment via OFS by FY26,” Nagaraju said on the sidelines of the Global Fintech Fest 2025.
The government is progressing with its stake divestment plans through the Offer for Sale (OFS) route in five PSU banks. Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India and Punjab and Sind Bank have been shortlisted for partial disinvestment in the coming months.
On September 16, Nagaraju had said that there is no proposal to government stake below 51 percent and government to remain majority shareholder.
“There is no proposal to cut government stakes in PSU banks below 51%. We want to be the majority shareholder,” Nagaraju said at CNBC TV18's Banking Transformation Summit 3rd edition.
On July 30, Moneycontrol had reported that merchant bankers appointed to manage the upcoming QIP of five nationalised banks have likely been mandated by DIPAM to rope in as many foreign investors as possible during roadshows.
Nagaraju further said that most insurers have passed on the full 18 percent benefit to the policy holders after the Goods and Services Tax (GST) cut by the government.
“PSU insurers have not reduced agent commissions despite giving GST benefit. Each insurer has its own business plan to absorb the ITC hit and expand operations,” he added.
Both public and private insurers have reduced the cost of insurance after GST rate was brought down to zero, and PSU insurers are focusing on expanding business; others are trimming commissions based on strategy, Nagaraju said.
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