Central Bank of India shares fall 6% after OFS for non-retail opens today; Details here

Shares of Central Bank of India Ltd. declined 6% on Friday, May 22, as the government begins its stake sale process through an Offer For Sale (OFS) .

The Centre will disinvest 4% of its equity in the lender through the Offer For Sale, and has the option to divest another 4% through the green shoe option, according to the Department of Investment and Public Asset Management (DIPAM).

Non-retail investors can bid for the Offer for Sale on Friday, May 22, while retail investors can bid for it on Monday, May 25.

At the end of the March quarter, the Centre held 89.27% stake in the bank, as per data available on the stock exchanges. Public shareholders held 10.73% stake in the lender. Of these, retail investors or those with authorised share capital of up to ₹2 lakh held up to 3.42% stake.

In order to be compliant with the minimum public shareholding norms (MPS), the government will have to sell another 14.27% stake in Central Bank of India.

The government, Bank of India, appointed Goldman Sachs as the sole transaction advisor for the stake sale in four public sector banks (PSBs), which included the Central Bank of India.

Central Bank of India reported its Bank of India last month. Its net profit fell 30% to ₹724.4 crore from ₹1,033.6 crore. Its net interest income (NII) increased 17.8% to ₹4,002 crore from last year.

Its asset quality was broadly stable, with its gross non-performing assets (NPA) improved marginally to 2.67% from 2.7% sequentially while net NPA increased 0.49% from 0.45% last quarter.

Central Bank of India had raised ₹1,500 crore through a QIP in March 2025. The lender had issued shares at a price of ₹40.49 per share. The stock currently trades below those levels.

Shares of Central Bank of India were trading 5.8% lower at ₹31.95 apiece at 9.42 am on Friday. The stock has declined 13.5% in the past month.

Also Read: Dalmia Bharat to acquire JAL cement capacity in central India from Adani Group for ₹2,850 crore