The Centre is set to launch an Offer for Sale (OFS) in Indian Overseas Bank (IOB) as part of its plan to reduce its holding in public sector banks and comply with minimum public shareholding norms, official sources told NDTV Profit.
The government currently holds a 92.44% stake in Indian Overseas Bank and is expected to soon launch the OFS to pare its shareholding.
This follows the government's successful stake sale in December 2025, when it diluted a 2.17% stake in IOB through an OFS that received a strong response from investors.
According to official sources, the government is expected to continue stake sales in public sector banks over the coming months to meet public float requirements.
Punjab & Sind Bank and UCO Bank are likely to be the next candidates for stake dilution.
The government currently owns 93.85% of Punjab & Sind Bank and 90.95% of UCO Bank, both significantly above the minimum public shareholding threshold prescribed for listed companies.
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The proposed stake sales form part of the Centre's broader disinvestment strategy aimed at improving market liquidity in state-owned enterprises while maintaining majority ownership.
According to official sources, the Department of Investment and Public Asset Management (DIPAM) has mobilised Rs 20,272 crore through disinvestment during FY27 so far.
Separately, the government has set an asset monetisation target of Rs 80,000 crore for the current financial year, as it seeks to raise resources through strategic stake sales and the monetisation of public assets.
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