Public sector banks: As of Thursday, a senior government official stated that five of the twelve Public Sector Banks (PSBs) still do not adhere to the minimum public shareholding (MPS) standard, which is set at 25%. The Department of Financial Services Secretary, Vivek Joshi, told ANI that the five PSBs had action plans in place to fulfil the MPS requirement.
Status of Compliance
These banks are Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Punjab and Sind Bank, and Central Bank of India. “Out of twelve Public sector banks, four were complying with minimum public shareholding MPS requirement as of 31 May 2023. As a part of the ongoing effort, three more PSBs have complied with the requirement till now. The remaining five PSBs have laid out action plans to meet the MPS requirement going forward,” Joshi told ANI.
Minimum Public Shareholding Requirement for Listed Firms
For all listed firms, the Minimum Public Shareholding (MPS) standard requires a minimum of 25% public float. Certain PSUs have been granted a complete exemption from MPS through August 2024. The guideline states that within three years of listing, corporations must have a public shareholding of at least 25%.
State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Central Bank of India, Indian Overseas Bank, Canara Bank, Union Bank of India, Indian Bank, Bank of Maharashtra, Indian Bank, and UCO Bank are the twelve PSBs. “SBI, Canara, Bank of Baroda, PNB, BoI, Indian bank and UBI comply with the MPS requirements,” Joshi said.