The Indian government is reportedly planning to allow four state-owned banks to hit the capital market to raise funds in FY25.
The banks, including Punjab National Bank (PNB) and Central Bank of India (CBI), may be permitted to raise funds or expand their public float to boost their lending activities and increase public participation, The Economic Times (ET) reported, citing unnamed sources.
While PNB plans to go for a follow-on public offer (FPO) by September, the CBI is seeking approval for an offer for sale (OFS) to expand its public float.
The Indian government currently holds a 93.08 percent stake in the CBI.
The ET report said the PNB board has already approved a proposal to raise Rs75 billion in equity capital in FY25 through an FPO or Qualified Institutional Placement (QIP).
Punjab & Sind Bank, another state-owned bank planning to raise funds, may raise Rs2.50 billion through the QIP route in the next financial year.
There are 12 public sector banks (PSBs) in the country currently, including the State Bank of India (SBI), PNB, Bank of Baroda, and CBI.
The government has ownership that surpasses 80 percent in six of the state-run banks.
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