PSU Financial institution Stake Sale: QIP of Rs 2000 crore authorised, what would be the authorities’s stake in banks after the problem? – INA NEWS

PSU Financial institution Stake Sale: The federal government has authorised the plan to promote stake in 5 public sector banks. CNBC-TV18 has given this info quoting sources. These embrace Financial institution of Maharashtra, UCO Financial institution, Indian Abroad Financial institution, Central Financial institution of India and Punjab and Sindh Financial institution. Based on the report, this stake sale contains Certified Institutional Placement (QIP) and Supply for Sale (OFS) of Rs 2000-2000 crore.

OFS route continues to be not clear. Nevertheless, from the QIP portion it may be estimated how a lot stake the federal government may have in these 5 PSU banks after profitable QIP.

On the present market worth, Punjab & Sind Financial institution has the best stake dilution, whereas Indian Abroad Financial institution has the least. Primarily based on present costs, after profitable QIP, the federal government’s stake in these banks might be as follows-

After QIP, there will probably be an enchancment of 100 to 300 foundation factors within the Capital to Danger Asset Ratio (CRAR) of banks. On this state of affairs, the most important beneficiary will probably be Punjab and Sindh Financial institution, whereas the Tier-I ratio of the Central Financial institution will probably be least affected.

After this information of CNBC-TV18, shares of those PSU banks registered an increase of 15% to twenty% on Tuesday. The present worth of the extra authorities stake is now round ₹50000 crore.

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