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PSU banks continue to rally: Bank of Maharashtra, BOI, IOB, Central Bank locked at upper circuit on… –

Source: Reuters

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.

Also read: Analysis | PSB privatisation: Will there be takers for NPA-ridden government banks?

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 nearly 4 percent hitting fresh high of 2,549.80 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 quoting at Rs 93.15, up Rs 8.45, or 9.98 percent. Bank of Maharashtra touched a 52-week high of Rs 25.10 and quoting at Rs 25.10, up Rs 2.25, or 9.85 percent on the BSE.

Central Bank of India has touched 52-week high of Rs 24 and was quoting at Rs 24, up Rs 4, or 20.00 percent. Indian Overseas Bank touched 52-week high of Rs 18.80 and was quoting at Rs 18.80, up Rs 3.10, or 19.75 percent on the BSE.