Govt Appoints Goldman Sachs as Sole Banker for Stake Dilution in 4 Public Sector Banks – CNBC TV18

The government of India has appointed Global Investment Banking Firm Goldman Sachs as the Sole Transaction Advisor for the stake sale in four public sector banks (psbs) —uco bank, centen & Sind Bank, and Indian Overseas Bank (IOB).

Goldman Sachs will be responsible for structuring the deal, identifying potential investors, and ensuring smooth execution of the stake sale. The movie is part of the center’s broader banking sector reform strategy aimed at improving the operational efficiency and market competition of public sector banks.

The government is likely to dilute its equity stake in Each of the four banks by up to 5%. The disinvestment will be executed in traches, starting in the current fiscal year (FY26) and Spread over the next two to three years.

As per A CNBC-TV18 Report, The Department of Investment and Public Asset Management (Dipam) has alredy approved offer for sale (ofs) transactions for five psbs, integrating Bank of Maharashtra, meaning, is expected to meet the 25% minimum public shareholding (MPS) Requirement through a Qualified Institutional Placement (QIP) Route.

Despite initiating the ofs process, the government is also expected to request an extension of the August 2026 deadline for achieving mps compliance, likely pushing it to 2027, AS Equity Dil Occur Gradually. Currently, Government Holdings in All Four PSBS stand at 89% or higher.

In Parallel, The Government is preparation to invite financial bids for the strategic sale of idbi bank between October and December 2025, to select a successful bidder by the End of26, Accrowing to another CNBC-TV18 Report Quoting Dipam Secretary Arunish Chawla.

The Government’s Move to Bringing Down its stake in public sector banks aligns with broader efforts to enhance governance standards, Deepen Capital Markets, and Comply with SEBI ‘.