New Delhi: The government is considering paring its stake in four public sector banks -Central Bank of India, Uco Bank, Punjab & Sind Bank and Indian Overseas Bank-to 75% to meet the stock market regulator’s mandated minimum public shareholding. Simultaneously, it is working on a strategy for the next round of consolidation in public sector banks that could identify two more banks for privatisation, according to people familiar with the development.The Union government announced in the 2021-22 budget that, besides IDBI Bank, it would take up two public sector banks and one general insurance company for privatisation. Earlier this month, the government announced that Canadian billionaire Prem Watsa-promoted Fairfax Financial Holdings will acquire a 60.72% stake in IDBI Bank for Rs 52,878 crore. The Centre’s long-term intention is to maintain three to four large state-owned banks.
