New Delhi, April 21 -- The Centre is planning a qualified institutional placement (QIP) for Bank of Maharashtra to reduce its stake below 75% in keeping with public float norms, with the sale expected to conclude by FY26-end, two people aware of the matter told Mint.

The move is part of a phased divestment strategy aimed at reducing government holdings in public sector banks (PSBs) that currently do not meet the Securities and Exchange Board of India's (Sebi) requirement of at least 25% public shareholding in listed companies.

"The QIP for Bank of Maharashtra will help move closer to compliance with Sebi norms," the first person mentioned above said, requesting anonymity. "Similar plans are in place for other PSBs, but meeting the share...