Privatisation buzz lifts Indian Overseas Bank, Central Bank stocks by 20%

 The stock of the Mumbai-based Central Bank was locked in the upper circuit at Rs 24.30 on the back of an over 2x jump in trading volumes. A combined 88.5 million shares changed hands

Shares of Central Bank of India and Indian Overseas Bank were locked in the 20 per cent upper circuit on Monday, on the back of heavy volumes amid reports that the Centre might privatize the two financial institutions by selling a 51 per cent stake in the lenders.

The stock of the Mumbai-based Central Bank was locked in the upper circuit at Rs 24.30 on the back of an over 2x jump in trading volumes. A combined 88.5 million shares changed hands.

IOB shares hit a 52-week high of Rs 23.60 on the NSE. Volumes more than doubled with a combined 76.7 million shares changing hands on the NSE and BSE.

The privatization plan was announced in the Budget, as part of the government’s broader divestment goals for FY22.

Meanwhile, the Nifty PSU Bank index surged over 4 percent to 2,477.25, as compared to a 0.4 per cent rise in the Nifty50.

Jammu & Kashmir (J&K) Bank and Punjab & Sind Bank from the index rallied 20 per cent and 12.6 percent, respectively.

Bank of Maharashtra, Union Bank of India, Bank of India and UCO Bank were up in the range of 4 percent to 5 per cent.