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Central Bank of India, IOB shares hit 52-week high on privatisation buzz

Indian Overseas Bank and Central Bank of India are likely candidates for disinvestment, according to sources.

June 30, 2021 / 12:41 PM IST
 
 
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Central Bank of India and Indian Overseas Bank stocks have been in focus ever since the Cabinet Secretary-led panel selected the banks for privatisation.

Indian Overseas Bank (IOB) and Central Bank of India (CBI) are likely candidates for disinvestment, the news channel reported citing sources.

The two state-run banks might see 51 percent stake sale in the first phase of disinvestment.

Also Read: Cabinet Secretary-led panel clears names for bank privatisation; IOB, CBI likely candidates

The Ministry of Finance is also working on legislative amendments for the privatisation of the public sector banks (PSBs).

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Central Bank of India share price has surged over 100 percent in the last 6 months and was trading at Rs 28.05, up Rs 2.10, or 8.09 percent at 12:23 hours. It has touched a 52-week high of Rs 29.65. It has touched an intraday high of Rs 29.65 and an intraday low of Rs 26.10.

On the other hand, the share price of Indian Overseas Bank was trading at Rs 28.05, up Rs 2.25, or 8.72 percent. It has touched a 52-week high of Rs 29. It has touched an intraday high of Rs 29.00 and an intraday low of Rs 26.

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The weak financial metrics of lenders like CBI and IOB could lead to unexpected hurdles in the government's plan to privatise the lenders, banking analysts and experts told Moneycontrol.

Both the IOB and CBI are currently under the Prompt Corrective Action (PCA) framework imposed by the Reserve Bank of India (RBI). Under the PCA framework, the central bank imposes certain business restrictions on lenders with weak financial metrics.

The Centre has set an ambitious divestment target of Rs 1.75 lakh crore for FY22.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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first published: Jun 30, 2021 12:40 pm
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