The Indian government has appointed global investment banking firm Goldman Sachs as the sole transaction adviser for the stake sale in four public sector banks (PSBs) — Uco Bank, Central Bank of India, Punjab & Sind Bank, and Indian Overseas Bank, according to a CNBC-TV18 report.
Goldman Sachs will oversee the deal structure, locating potential investors, and ensuring a smooth execution. Their appointment is part of the Centre’s strategy to reform the banking sector, aimed at improving operational efficiency and market competitiveness of public sector banks. The government is likely to dilute its equity stake in each of the four banks by up to 5 per cent. This will be executed in tranches, starting in FY26 and spread over the next three years.
According to the report, the Department of Investment and Public Asset Management has already approved an offer for sale transactions for five PSBs, including the four mentioned above. Bank of Maharashtra, meanwhile, is expected to meet the 25 per cent minimum public shareholding requirement through a qualified institutional placement route.
The government’s move to bring down its stake in public sector banks aligns with broader efforts to enhance governance standards, deepen capital markets, and comply with Sebi’s MPS norms.