The Government of India has appointed global investment banking firm Goldman Sachs as the exclusive transaction advisor for the planned stake sale in four public sector banks—UCO Bank, Central Bank of India, Punjab & Sind Bank, and Indian Overseas Bank (IOB). Goldman Sachs will oversee deal structuring, identify prospective investors, and manage the execution process. This initiative is part of the Centre’s wider banking sector reform to boost efficiency and enhance the competitiveness of PSBs.
The government plans to reduce its equity holding in each of these banks by up to 5%, with the disinvestment to be carried out in phases starting from FY26 and continuing over the next two to three years. The Department of Investment and Public Asset Management (DIPAM) has already approved Offer for Sale (OFS) for five PSBs, including the four mentioned. Meanwhile, Bank of Maharashtra is expected to meet the 25% minimum public shareholding (MPS) norm via a Qualified Institutional Placement (QIP).
Given the gradual pace of dilution, the government is likely to seek an extension for MPS compliance from the current August 2026 deadline to 2027. Additionally, a strategic sale of IDBI Bank is scheduled for late 2025.
