The finance ministry may approach markets regulator Sebi to seek relaxation on the minimum 25% public shareholding norm for some public sector banks (PSBs).
There are 13 PSBs, including IDBI Bank and Bank of India, in which the Centre’s holding is more than 75%.
If these banks are unable to meet the norm by the August deadline, the department of financial services will have to approach Sebi for exemption, sources said.
Listed public sector undertakings (PSUs), including banks, have already been provided one year extension till August 21 to comply with the norms.
Due to successive capital infusion in the NPA-ridden PSBs, the government holding in them has increased and the public float deferred in the last two years.
While the government holding in United Bank of India is the highest at 93.13%, holding in another Kolkata-based lender UCO Bank stands at 90.80%.
The government’s stake in Indian Overseas Bank is 89.74%, Bank of Maharashtra (87.01%), IDBI Bank (85.96%), Punjab and Sind Bank (85.56%), Bank of India
(83.09%), Dena Bank (80.74%) and Indian Bank (81.71%).
In Corporation Bank, it is 79.87%, Central Bank of India (78.52%), Oriental Bank of Commerce (77.23%) and Andhra Bank (77.99%) are above the minimum public shareholding (MPS) requirements.
Many PSBs have lined up plans for raising capital from market which will result in increasing the public shareholding.