The finance ministry may approach markets regulator Sebi to seek relaxation on the minimum 25 per cent public shareholding norm for some public sector banks (PSBs).
There are 13 PSBs including IDBI Bank, Bank of India in which the government holding is more than 75 per cent, media reports said.
If these banks are unable to meet the norm by August deadline, the Department of Financial Services will have to approach the Securities and Exchange Board of India (Sebi) for exemption, a PTI report quoted sources as saying.
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 per cent, government holding in another Kolkata based lender UCO Bank stands at 90.80 per cent, the report said.
Government’s stake in Indian Overseas Bank is 89.74 per cent, Bank of Maharashtra (87.01 per cent), IDBI Bank (85.96 per cent), Punjab and Sind Bank (85.56 per cent), Bank of India (83.09 per cent), Dena Bank (80.74 per cent) and Indian Bank (81.71 per cent), it added.
In Corporation Bank, it is 79.87 per cent, Central Bank of India (78.52 per cent), Oriental Bank of Commerce (77.23 per cent) and Andhra Bank (77.99 per cent) 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, the report highlighted.
Together these banks plan to raise capital over Rs 50,000 crore during the current fiscal.
Leading the pack is the Central Bank of India, which has already got shareholders nod for raising Rs 8,000 crore equity capital via a follow-on public offer, rights issue or a qualified institutional placement (QIP), reported PTI.
Canara Bank also proposes to raise up to Rs 7,000 crore through various modes, the report said.