New Delhi:Indian Overseas Bank (IOB), Punjab & Sind Bank and Central Bank of India are working on share sales to reduce government ownership in line with Sebi’s mandate, officials said.

IOB has indicated a tentative timeline for its qualified institutional placement (QIP), while the other two lenders are yet to finalise theirs.

IOB has approval to raise up to Rs 5,000 crore through a QIP in the current financial year and has secured almost all necessary clearances, managing director and CEO Ajay Kumar Srivastava said. The bank plans to launch the issue towards the end of the current quarter or at the start of the fourth quarter, depending on market conditions. If the full amount is raised, equity dilution would be around 6 per cent, bringing the government’s stake in the Chennai-headquartered bank down to about 86 per cent from the existing 92.44 per cent, Srivastava said.Punjab & Sind Bank is also evaluating a QIP.