In Wednesday’s intra-day trade on the BSE, shares of two state-owned banks, Indian Overseas Bank (IOB) and Central Bank of India (CBI), soared up to 20% on large volumes amid reports that the two financial institutions may be privatized. According to a report by CNBC TV18, the Centre has nominated CBI and IOB for privatization.
In intra-day trade on the BSE today, IOB rose 20% to Rs 23.80, while CBI rose 15% to Rs 15. The S&P BSE Sensex, on the other hand, was up 0.2 percent at 58,810 at 09:19 a.m.
On the BSE, IOB and CBI shares reached 52-week highs of Rs 29 and Rs 29.65 on June 30, 2021, respectively. In intra-day trade today, the Bank of Maharashtra rose 9% to Rs 21.35, while the Bank of India rose 3% to Rs 60.35. The government’s greater divestment plans for FY22 were stated in the Union budget for 2021-22. It includes the privatization of a number of non-financial state-owned enterprises as well as the listing of India’s wholly-owned Life Insurance Corporation.
The Reserve Bank of India (RBI) lifted constraints on the bank’s ability to take prompt corrective action (PCA) in September.
