The government is accelerating the process of reducing its stake in public sector banks (PSBs) and financial institutions. For Department of Disinvestment and Public Property Management (DIPAM) Done Bids invited from merchant bankers and legal advisors Are of This step 25% public shareholding rules of SEBI Has been raised to ensure compliance with.
RFP released for merchant bankers by Dipam
- Last date for depositing dialects: 27 March 2025
- To selected merchant bankers and legal advisors Will be included in the panel for 3 yearsWhom Can be extended up to 1 year।
- Bankers More than ₹ 2,500 crore (A+) and less than ₹ 2,500 crore (A) Will be classified based on the deal of.
Which banks and financial institutions will reduce the government's share?
The government will reduce stake in banks and institutions where yet 25% public share The rule of has not been implemented.
The most government share banks:
| Bank name | Government's share (%) |
|---|---|
| Punjab & Sindh Bank | 98.3% |
| Indian Overseas Bank | 96.4% |
| Uco bank | 95.4% |
| Central bank of india | 93.1% |
| Bank of Maharashtra | 86.5% |
Major financial institutions with government share:
| Institute name | Government's share (%) |
|---|---|
| Indian Railway Finance Corporation (IRFC) | 86.36% |
| The New India Assurance | 85.44% |
| General Insurance Corporation | 82.40% |
Big step towards privatization
Government already IDBI Bank Has started the process of privatization of. Finance Minister in the budget of 2021-22 Nirmala Sitharaman The privatization of two more public banks was announced, but their names have not been announced yet.
Merchant bankers role
Selected merchant bankers Government help in attracting investors, selling stake at the right time and analyzing market status do. Their main responsibilities will be:
Analysis of domestic and international market Road show to attract potential investors Top management and meetings with investors Highlight
Disinvestment target will be completed by August 2026
Government 1 August 2026 The deadline has been fixed, under which All public banks and financial institutions have to complete 25% public shareholding ruleFrom this Transparency in the market will increase and liquidity will improve।
| Main point of disinvestment process | Details |
|---|---|
| Objective | Reducing stake in public sector banks and financial institutions |
| Minimum public shareholding | 25% (SEBI Rules) |
| Procedure department | Put |
| RFP last date | 27 March 2025 |
| Disinvestment deadline | 1 August 2026 |
| Affected banks and financial institutions | Punjab & Sindh Bank, Indian Overseas Bank, UCO Bank, IRFC, New India Assurance, etc. |
