MPS norm: FinMin may extend August deadline for PSBs, insurance firms

Five PSBs are planning to reduce government stake to less than 75%

The finance ministry is in favour of extending the August deadline for public sector banks (PSBs) as well as insurance companies to increase their minimum public shareholdings (MPS) to the mandated 25 per cent, said a senior government official.

“The election results will determine the course of action. Most likely, those who did not receive an extension to meet the minimum shareholding norm will be granted one,” the senior government official said. The official added that the department of financial services is likely to write to the Securities Exchange Board of India (Sebi) regarding the issue.

Five public sector lenders,