Bank of Maharashtra, Bank of India, Indian Overseas Bank and Central Bank of India shares gets boom of 10% on Potential Privatisation
On February 16, shares of Bank of Maharashtra, Bank of India, Indian Overseas Bank and Central Bank of India gained more than 10 percent each in the early trade. The reports of privatisation of these banks lead to this boom in shares.
According to some reports, these four are the state run banks which would be privatised in the FY 21-22.
Two officials told Reuters on condition of anonymity as the matter is not yet public, 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. The four banks on the shortlist are Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India. Two of those banks will be selected for sale in the 2021/2022 financial year which begins in April.
Bank of India has a workforce of about 50,000 and Central Bank of India has 33,000 staff, while Indian Overseas Bank employs 26,000 and Bank of Maharashtra has about 13,000 employees, according to estimates from bank unions. Bank of Maharashtra’s smaller workforce could make it easier to privatise and therefore potentially one of the first to be sold, the sources said.
On Tuesday, Bank Of India touched 52-week high of Rs 66 and quoting at Rs 64.10, up Rs 5.25, or 8.92 percent. Also Bank of Maharashtra touched 52-week high of Rs 18.50 and quoting at Rs 18.35, up Rs 2.45, or 15.41 percent.