The shares of Bank of Maharashtra were trading lower on Tuesday, December 2, amid news of the government initiating a stake sale through an Offer for Sale (OFS). The government plans to offload up to a 6% stake in the state-owned bank, which could potentially raise around ₹2,600 crore at current market prices.
In early trading, the stock was at ₹57.15, down 0.87%. The Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla announced that the OFS opens for non-retail investors on Tuesday, with retail investors allowed to bid on Wednesday. The government aims to divest 5% equity, with an additional 1% available as a green shoe option.
Currently, the government holds a 79.60% stake in the Pune-based bank. The stake reduction will help the bank meet the minimum public shareholding norm of 25%, as mandated by SEBI regulations, which requires listed companies to have at least 25% of shares held by the public. Post-dilution, the government’s stake will fall below 75%.
This move aligns with regulatory guidelines, as SEBI has granted forbearance to Central Public Sector Enterprises (CPSEs) and public sector financial institutions until August 2026. Other major public sector lenders with over 75% government stake include Indian Overseas Bank (94.6%), Punjab & Sind Bank (93.9%), UCO Bank (91%), and Central Bank of India (89.3%).
Understanding the 75% Public Shareholding Norm
In India, the “75% public shareholding norm” refers to the requirement that promoters or promoter groups hold no more than 75% of a company’s shares, ensuring at least 25% is owned by the public. This rule aims to promote fair pricing, liquidity, and better corporate governance by preventing excessive ownership concentration.
Bank of Maharashtra Q2 FY26 Performance
In its latest quarterly results, Bank of Maharashtra reported a 23% rise in standalone net profit to ₹1,633 crore for Q2 FY26, driven by lower bad loans and increased interest income. This compares to a net profit of ₹1,327 crore in the same quarter last year.
Interest income increased to ₹7,128 crore from ₹6,017 crore, while total income rose to ₹7,973.61 crore from ₹6,809.2 crore in the corresponding period. The bank also reduced gross non-performing assets (NPAs) to 1.72% of gross loans from 1.84%, and net NPAs declined to 0.18% from 0.2%, reflecting improved asset quality.
