Govt to reduce stake in four banks to 75%, move towards privatization of Central Bank and IOB The Indian government is considering reducing its stake in four public sector banks. Not only this, some public sector banks are also thinking of privatization. These include Central Bank of India, UCO Bank, Punjab and Sindh Bank and Indian Overseas Bank. As per SEBI's minimum public shareholding requirements, the government is considering reducing its stake in these banks to 75 percent. According to sources, the government is working on a strategy for the next round of mergers of public sector banks. In which two banks are planning to privatize Central Bank and Indian Overseas Bank. According to the announcement of the government in the budget of 2021-22, apart from IDBI Bank, two other public sector banks and one general insurance company will be privatized. In which the government is moving forward. Recently, Indian-origin billionaire Prem Vatsa-owned Fairfax Financial Holdings raised Rs. 52878 crore will acquire 60.72 percent stake in IDBI Bank. The central government will retain three to four large public sector banks of the country, merging or privatizing all other banks. It may be mentioned here that currently the government's shareholding in Indian Overseas Bank is 92.44 percent, while it holds 81.19 percent in Central Bank and 93.85 percent in Punjab and Sindh Bank.
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