PSU Banks likely to receive two-year extension for MPS compliance

Public sector banks (PSBs) may receive a two-year extension to meet SEBI's minimum public shareholding (MPS) norm of 25%. Currently, five out of twelve PSBs do not comply, with government holdings exceeding 75%. These banks include Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, Central Bank of India, and Bank of Maharashtra. The extension request has been submitted to the Department of Economic Affairs. The final decision on compliance strategies like share sales will depend on market conditions and the banks' capital needs.