New Delhi, Feb. 11 -- Three of the five state-run banks, which have yet to bring the government ownership below 75% and meet the market regulator's 25% minimum public shareholding norm, are expected to raise capital through qualified institutional placements (QIPs) in 2025-26, said two people close to discussions.

UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank-where government ownership currently exceeds 95%-may carry out multiple rounds of QIPs in the coming fiscal, subject to market conditions, as part of a phased approach to meeting regulatory requirements, the people added.

The Securities and Exchange Board of India (Sebi), which mandated a 25% minimum public shareholding (MPS) for all listed companies in August 2024, grante...