Shares of four public sector banks—Central Bank of India, Indian Overseas Bank, UCO Bank, and Punjab and Sind Bank—experienced a significant rise in early trading on November 19. This surge follows reports that the government is considering a plan to sell minority stakes in these banks to meet minimum public shareholding requirements.

The Finance Ministry is expected to seek Cabinet approval for the proposal in the coming months. The stake sale is planned to be executed through an Offer For Sale in the open market, with the timing and amount dependent on market conditions. As of September 30, the government holds over 93% in Central Bank of India, 96.4% in Indian Overseas Bank, 95.4% in UCO Bank, and 98.3% in Punjab and Sind Bank.

Currently, five out of twelve public sector banks have yet to comply with the market regulator Sebi"s requirement of maintaining a minimum public shareholding of 25%. The government has granted an extension until August 2026 for these banks to meet the compliance norms.