Bengaluru, Sept. 17 -- On 17th September, M Nagaraju, Secretary of the Department of Financial Services (DFS), stated that four state-owned banks will be raising capital this year to ensure compliance with the Securities and Exchange Board of India's (SEBI) minimum public shareholding (MPS) requirement.

As per SEBI regulations, every listed company must maintain at least 25 percent of its shareholding with public investors. However, the government's stake in these four PSU banks, including Indian Overseas Bank and UCO Bank, is significantly higher than the prescribed threshold, necessitating a reduction in government ownership by issuing additional shares to the public.

Among the 12 PSBs, these four banks had government holdings close t...