IOB, Central Bank shares surge over 15% after divestment reports

Indian Overseas Bank and Central Bank of India shares soared over 15 per cent in the intraday trade on BSE on Monday. The spike in shares of the two government-owned bank came after certain media reports claimed that the Centre has shortlisted CBI and IOB for divestment.  

Indian Overseas Bank shares surged to day's high of Rs 23.80 per share, while Central Bank stocks rose to Rs 23.65 per share on the BSE in the early trade on Wednesday.  

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Indian Overseas Bank was currently trading with over 11 per cent gain. Shares of this state-owned bank was trading at Rs 22.10, up Rs 2.25 or 11.34 per cent around 12.10 pm. Indian Overseas Bank shares traded on 52-week high value of Rs 29.00 on June 30, 2021, while the share hit year low of Rs 9.64 per share on BSE on November 24, 2021.

Central Bank stocks were also seen trading with gains of nearly 11 per cent or Rs 2.25 higher to RS 22.80 per share on BSE. Central Bank shares hit 52-week high of Rs 29.65 on June 30, 2021 and 52-week low of Rs 11.71 on November 24 last year.  

Earlier this morning, the Exchange also sought clarification from Indian Overseas Bank on November 24, 2021, with reference to news appeared in 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.”

This has also been seen as part of the government's ambitious disinvestment target for this year.

This is among 26 bills that are scheduled to be introduced in the Parliament during the winter session.