Nagaraju said on September 16 that the government will continue to keep the majority shareholding and that there was no plan to reduce it to less than 51%.
On October 7, M Nagaraju, the secretary of the Department of Financial Services, said that the current financial year would see the completion of the offer for sale (OFS) divestment in the state-owned banks.
On the fringes of the Global Fintech Fest 2025, Nagaraju said, “We are on schedule to complete PSU banks sale via OFS by FY26.”
Through the Offer for Sale (OFS) process, the government is moving on with its plans to liquidate its holding in five PSU banks. They have nominated Punjab and Sind Bank, Indian Overseas Bank, UCO Bank, Central Bank of India, and Bank of Maharashtra for partial disinvestment in the next months.
Nagaraju said on September 16 that the government will continue to keep the majority shareholding and that there was no plan to reduce it to less than 51%.
“No plan exists to reduce government ownership of PSU banks to less than 51%. At the third edition of CNBC TV18’s Banking Transformation Summit, Nagaraju said, “We aim to be the majority shareholder.”
According to a July 30 Moneycontrol article, DIPAM has probably instructed merchant bankers tasked with overseeing the next QIP of five nationalized banks to recruit as many foreign investors as possible via roadshows.
Nagaraju said that after the government’s reduction in the Goods and Services Tax (GST), the majority of insurers had given policyholders the entire 18 percent rebate.
“Despite offering the GST advantage, PSU insurers have not lowered agency fees. In order to grow operations and absorb the ITC blow, each insurer needs a unique business strategy,” he said.
Following the GST rate’s reduction to zero, both public and private insurers lowered insurance rates. PSU insurers are concentrating on growing their businesses, while others are reducing commissions in accordance with their business plans, according to Nagaraju.