Shares of Indian Overseas Bank, Central Bank of India, Bank of Maharashtra and Bank of India continued to rally for the third straight session on February 18 and were locked in upper circuit on reports of privatisation of these banks.
The government has shortlisted four mid-sized state-run banks for privatisation, under a new push to sell state assets and shore up government revenues, news reports said quoting government sources.
The four banks on the shortlist are Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India, two officials told Reuters on condition of anonymity.
Two of those banks will be selected for sale in the 2021/2022 financial year which begins in April, the officials said. The shortlist has not previously been reported.
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The government hopes that the Reserve Bank of India, the country's banking regulator, will soon ease lending restrictions on Indian Overseas Bank after an improvement in the lender's finances that could help its sale.
The Nifty PSU Bank Index gained over 5 percent hitting fresh high of 2588.20 led by the Bank of Maharashtra, Bank of India, Indian Overseas Bank, Union Bank of India, Indian Bank and UCO Bank.
Central Bank of India and Indian Overseas Bank locked at 20 percent upper circuit, while Bank Of India, Bank of Maharashtra locked at 10 percent upper circuit.
Bank Of India touched 52-week high of Rs 93.15 and ended at Rs 93.15, up Rs 8.45, or 9.98 percent. Bank of Maharashtra touched a 52-week high of Rs 25.21 and ended at Rs 25.10, up Rs 2.29, or 9.99 percent on the BSE.
Central Bank of India closed at Rs 24.04, up Rs 4.00, or 19.96 percent. It touched a 52-week high of Rs 24.04. It has touched an intraday high of Rs 24.04 and an intraday low of Rs 21.00. There were pending buy orders of 356,551 shares, with no sellers available.
Indian Overseas Bank closed at Rs 19.00, up Rs 3.16, or 19.95 percent. It touched a 52-week high of Rs 19.00. It has touched an intraday high of Rs 19.00 and an intraday low of Rs 17.92. There were pending buy orders of 1,387,963 shares, with no sellers available.