The share prices of Central Bank of India and Indian Overseas Bank (IOB) marked a 20 per cent upper circuit on the National Stock Exchange (NSE) on the back of heavy volumes amidst media reports that both financial institutions are shortlisted for divestment.
In a report by CNBC Awaaz, Central Bank of India and IOB have been shortlisted by the centre for divestment. In the first phase of divestment, the two lenders might witness a sale of 51 per cent. The report added that the government will be amending the Banking Regulations Act and other banking laws necessary for divestment.
The plan for privatization was announced in the Union Budget for 2021-22 as a part of the centre’s larger divestment goals for FY22 including plans of privatizing several other non-financial state-run entities and the listing of the wholly-owned Life Insurance Corporation of India (LIC).
Mumbai-based Central Bank of India was trading at ₹24.30, adding Rs 4.05 or 20 per cent. A combined shares of 80.5 million have changed hands and pending buy orders for 2.9 million shares existed on the NSE and BSE.
On NSE, Chennai-based IOB’s shares hit a 52-week high of ₹23.60. It was up by ₹3.90 or 19.80 per cent. Additionally, the counter saw a more than doubled trading volumes with a combined shares of 71 million changing hands on NSE as well as BSE. With no sellers available, pending buy orders for 3.6 million shares existed on both the exchanges.