At 57.6%, Govt Stake in SBI Is Lowest among PSBs
Moneylife Digital Team 19 July 2022
The Indian government holds just a 57.6% stake in the country's largest lender State Bank of India (SBI), and the highest 98.25% stake in Punjab & Sind Bank as of March 2022, the Rajya Sabha was informed. Ten years ago, the government's stake in SBI was 61.58%, which has come down to 57.59% as of March 2022.
 
Responding to a question on the privatisation of public sector banks (PSBs), Dr Bhagwat Karad, minister of state for finance, says the policy for privatisation of two PSBs was announced in the Union Budget for FY22. "...the objectives of the policy include enablement of growth of public sector enterprises through infusion of private capital, thereby contributing to economic growth and new jobs, and financing of social sector and development programmes of the government."
 
Priyanka Chaturvedi, a member of Parliament (MP), has asked whether the Union government has any plans to dilute its share in PSBs. 
 
While sharing the shareholding pattern of PSBs, Dr Karad clarified that "...banks raise equity capital from the market through qualified institutional placements and other routes, which results in dilution of the percentage shareholding of the government of India."
 
 
According to the data shared by the minister of state, out of the 12 PSBs, the government's stake in five banks remains above 90%. This includes Bank of Maharashtra (90.97%), Central Bank of India (93.08%), Indian Overseas Bank (96.38%), Punjab & Sind Bank (98.25%) and UCO Bank (95.39%). 
 
 
The Union government, through the President of India, owns an 83.49% stake in Union Bank of India, 81.41% stake in Bank of India, 79.86% stake in Indian Bank, 73.15% in Punjab National Bank, 63.97% in Bank of Baroda and 62.93% in Canara Bank. 
 
Ultimately, among the PSBs, SBI, has the highest stake (42.41%) from institutional investors and public shareholders. As of March 2012, the public shareholding, including institutional investors, in SBI was 35.89%, data from BSE shows.
 
Comments
deepak.narain
2 months ago
If Govt's involvement is so high, why do these Banks have huge bad debts?
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