New Delhi, Nov 01: Enthused by the success of public offers of shares of public sector banks in recent times, the government on Friday said it will encourage more banks including Bank of Maharastra (BoM) and Punjab & Sind Bank (PSB) to tap the capital market in coming months. "We will encourage more banks to tap the markets. At least two banks -- BoM and PSB -- are planning to do so this fiscal," banking secretary N S Sisodia told reporters at the weekly review meeting.
The erstwhile weak Indian Bank also plans to come with an IPO after 2-3 years now that it has come out of the red.
This fiscal, Uco Bank tapped the market at a price of Rs 12 per share and raised Rs 240 crore. The issue was over-subscribed 19 times and is now quoting at a premium, Sisodia said.
Vijaya Bank and Indian Overseas Bank also tapped the market for the second time and had raised the targeted amounts. "Both these issues were successful, reflecting appetite of the market for the banking stocks," Sosidia said. Bureau Report