Indian PSU banks see sharpest fall since May as govt rules out FDI cap hike, stake-sale plans

Bank of Baroda

03/12/2025 06:51

** All constituents on the Indian PSU bank index .NIFTYPSU decline; sub-index falls the most among all 16 sectors to 2.7%

** Sub-index set for steepest decline since May 6

** Government said on Tuesday that is not considering a proposal to increase the FDI limit to 49% for PSU banks

** Indian Bank INBA.NS falls the most to ~6%, followed by Punjab National Bank PNBK.NS and Bank of India at 5% and 3.4%, respectively

** As per government disclosure, State Bank of India SBI.NS has the most FDI investment, as of March 2025, at 11.07%

** FDI inflow for Canara Bank CNBK.NS stands at 10.55% and Bank of Baroda BOB.NS at 9.43%

** Govt also said that presently no proposal on merger or disinvestment of PSUs is under consideration

** YTD, sub-index is top gainer at 26.7%, outperforming Nifty 50's .NSEI 9.7% rise

 (Reporting by Urvi Dugar in Bengaluru)

 ((UrviManoj.Dugar@thomsonreuters.com;))