The government has approved a fund raising plan to the tune of ₹10,000 crore for five state-run lenders through the Qualified Institutional Placement (QIP) route, sources with knowledge of the matter told CNBC-TV18.

Other than Bank of Maharashtra, four other lenders, Punjab & Sind Bank, Indian Overseas Bank, UCO Bank and Central Bank of India have received approval to raise funds, sources said. These lenders may raise funds in small tranches starting the fourth quarter of financial year 2025, the sources said.

The sources further added that the Department of Disinvestment and Public Asset Management (DIPAM) has also received a mandate to sell stake in these above mentioned lenders through the Offer For Sale (OFS) route.

The government is trying to meet the 25% minimum public shareholding norms within these PSU Bank by August 2026. State-run lenders are under the administrative control of the Department of Financial Services.

The government holds a 79.6% stake in Bank of Maharashtra, while it owns a 98.25% stake in Punjab & Sind Bank, 96.38% stake in Indian Overseas Bank, 95.39% stake in UCO Bank and 93.08% stake in Central Bank of India at the end of the December quarter, as per the latest shareholding pattern on BSE.