Indian Overseas Bank shares rallied as much as 50 per cent for the third consecutive day on reports that the government has shortlisted the four mid-sized state-run banks, namely Indian Overseas Bank, Bank of India, Central Bank of India, as well as Bank of Maharashtra for privatisation. Indian Overseas Bank is quoting at Rs 18.80, up 19.75 per cent on the day on the NSE. Also, the Nifty PSU Bank index gained around 32.77 per cent in the last one month and is quoting at 2450.9, up 5.13 per cent on the day. On Thursday, February 18, shares of Indian Overseas Bank opened on the BSE at Rs 18, touching an intra day high of Rs 19, and an intra day low of Rs 17.92, so far.
The stock of Indian Overseas Bank quoted a 52 week high of Rs 19 and a 52 week low of Rs 6.17. On the BSE, shares of Indian Overseas Bank were last seen trading 19.95 per cent higher at Rs 19.00.
In a report on Tuesday, February 16, news agency Reuters, citing sources, had referred to the four banks as potential privatisation candidates. Earlier, while presenting Budget 2021, Finance Minister Nirmala Sitharman had also announced that the government will privatise four banks and an insurance company.
For its first round of privatisation, the government is considering mid-sized to small banks. The government can also look at some of the country’s bigger banks in the coming years. According to officials, two of the banks will be selected for sale or for the privatisation drive in the next fiscal year
However, the government will continue to hold a majority stake in the country’s largest lender – the State Bank of India, which is seen as a ‘strategic bank’ for implementing initiatives such as expanding rural credit.