INSUBCONTINENT EXCLUSIVE:
NEW DELHI: 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.
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, 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 per cent, government holding in another Kolkata based lender UCO Bank stands at 90.80 per
cent.
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).
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.
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)
Canara Bank also proposes to raise up to Rs 7,000 crore through various modes.
Bank of Baroda aims to mop up Rs 6,000 crore, while Syndicate
Bank plans to access the capital market and raise equity capital of up to Rs 5,000 crore in one or more tranches.
Several methods are
available to listed companies to comply with the public float requirements.
These include issuance of shares to public; offer for sale; sale
of shares held by promoters through secondary market institutional placement programme; rights issue to public shareholders; and bonus
shares to public shareholders.
Also, Qualified Institutional Placement (QIP) and sale of shares up to 2 per cent held by promoters or
promoter groups in the open market through block and bulk deal can be done to achieve the minimum 25 per cent public float
