GoI Picks Goldman Sachs for PSU Bank Stake Sale

Current Context: On August 26, 2025, the Government of India (GoI) appointed Goldman Sachs as the sole transaction advisor for stake divestment in four Public Sector Banks (PSBs)—Indian Overseas Bank (IOB), Central Bank of India (CBI), UCO Bank, and Punjab & Sind Bank.

• The plan involves up to 5% equity dilution in each bank via Offer for Sale (OFS), starting in Financial Year 2025–26 (FY26).
• The move aligns with Securities and Exchange Board of India (SEBI) norms on Minimum Public Shareholding (MPS).
• The process is overseen by the Department of Investment and Public Asset Management (DIPAM). GoI currently holds over 89% stake in each bank.

Question:

Q.1 On August 26, 2025, which global investment bank was appointed as the sole transaction advisor for the stake divestment in four Public Sector Banks (PSBs)?
a) Goldman Sachs
b) Morgan Stanley
c) J.P. Morgan
d) Citigroup

Answer: a) The Government of India selected Goldman Sachs to advise on divestment in four PSBs.