Government plans to pare stakes in 4 PSU banks to 75%

The government is reportedly planning to reduce its stakes in four public-sector banks to 75%, putting renewed focus on ownership levels across state-controlled lenders.

Two banks identified for privatisation

NITI Aayog has reportedly shortlisted Central Bank of India and Indian Overseas Bank as the two candidates for privatisation. The report does not identify the other two banks covered by the proposed stake reduction plan.

The reported move links two separate developments: a potential reduction in government ownership across four public-sector banks and the selection of two lenders for possible privatisation. Both Central Bank of India and Indian Overseas Bank are therefore central to the reported policy discussion.

What is known so far

• Government stakes in four public-sector banks are reportedly planned to be reduced to 75%.
• Central Bank of India and Indian Overseas Bank have reportedly been shortlisted for privatisation.
• No further details on the timing, process or the remaining two banks are provided.

The available information does not specify the next steps or confirm whether the reported privatisation plans have received final approval.