By Kavita Mistry 
As of June 2025, the government’s ownership in these banks is substantial, ranging from 57.42% in SBI to the highest holding in Indian Overseas Bank, with 94.61% holding.
Foreign Institutional Investor holdings, by contrast, are currently much lower, with Canara Bank having the highest FII share at 11.38% and is followed by State Bank of India at 9.33%. The IOB has the minimal FII holding among the lot with 0.08%.
The proposed policy would allow overseas investors to significantly increase their shareholding, potentially to more than 20%, bringing the Indian banking sector more in line with global financial markets.