IOB, Central Bank issue clarification to exchanges on privatisation as shares jump up to 20%, intraday

Indian Overseas Bank (IOB) and Central Bank of India today issued clarifications over news reports suggesting that government may bring a privatisation bill for these two banks during the winter session of Parliament. The news led to a surge in the share price of these banks.

“We have not received any communication regarding privatization of bank from DFS/ Government of India and we are unaware of the reasons for the sudden movement in stock price. It may be due to speculation,” IOB said in a post-market filing.

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https://www.business-standard.com/ dated November 24, 2021 quoting "IOB, Central Bank of India surge up to 20% on privatisation buzz"

The development finds root in 26 Bills to be introduced in the winter session of the Parliament. Without taking the name, the agenda of the Parliament reads, “the bill intends to effect amendments in Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980 and incidental amendments to Banking Regulation Act, 1949 in the context of the Union Budget announcement 2021 regarding privatisation of two Public Sector Banks.”