BUSINESS

IOB, Central Bank of India Surge Up to 20% on Privatisation

Shares of two state-owned banks, Indian Overseas Bank (IOB) and Central Bank of India (CBI), rallied up to 20 per cent on the BSE in Wednesday’s intra-day trade on the back of heavy volumes amid reports that the two financial institutions might be privatised. The Centre has shortlisted CBI and IOB for divestment, media reported.

IOB has surged 20 per cent to Rs 23.80, while CBI gained 15 per cent on the BSE in intra-day trade today. In comparison, the S&P BSE Sensex was up 0.2 per cent at 58,810 in the morning trade.

Shares of IOB and CBI had hit a 52-week high of Rs 29 and Rs 29.65, respectively, on June 30, 2021, on the BSE. Meanwhile, the Bank of Maharashtra was up 9 per cent to Rs 21.35, and the Bank of India gained 3 per cent to Rs 60.35 in intra-day trade today.

The privatization plan was announced in the Union budget for 2021-22 as a part of the government’s broader divestment goals for FY22. It includes privatization of several other non-financial state-owned entities and listing the wholly-owned Life Insurance Corporation of India. In September, the Reserve Bank of India (RBI) had removed Prompt Corrective Action (PCA) restrictions on the bank.

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