PSU bank stocks like Central Bank of India, Indian Overseas Bank, Bank of Maharashtra see meteoric rise as government is set to reduce stake in them

Ahead of the upcoming Budget for 2025-2026, a pivotal development from the Indian government has been disclosed by the sources that the government may reduce its stake in five major Public Sector Undertaking (PSU) banks.

According to Bloomberg, these banks include as Bank of Maharashtra, Central Bank of India (CBI), UCO Bank, Indian Overseas Bank (IOB), and Punjab & Sind Bank.

After this, major PSU banks have surged up to 20 per cent, here's how the banking stocks fared today:

UCO Bank Stock Update

Shares of UCO Bank skyrocketed 18 per cent and closed at Rs 45.50. Meanwhile, the stock has touched an intraday high of 46.27 and a low of Rs 38.63.

Bank of Maharashtra Stock Update

Bank of Maharashtra closed at Rs 52.30 and increased 12 per cent from the previous close, apiece on the NSE website, with an intraday high of Rs 54.40 and a low of Rs 47.09, according to the NSE data.

Central Bank of India Stock Update

Central Bank of India's stock rose as much as 20 per cent and closed at Rs 56.24, with an intraday high of Rs 56.24 and a low of Rs 47.06.

Indian Overseas Bank Stock Update

On Tuesday (January 14), the Indian Overseas Bank stock also rose 20 per cent and wrapped up at Rs 54.34, with an intraday high of Rs 54.54 and a low of Rs 45.61.

Punjab & Sind Bank Stock Update

Meanwhile, Punjab & Sind Bank closed at Rs 48.30, up 14 per cent, with an intraday high of Rs 50.54 and a low of Rs 42.54.

How Nifty PSU Bank Index Performed Today

The Nifty PSU Bank index saw an increase of 247.5 points or 4.19 per cent to 6,144.75 points from the previous close i.e. 5,897.25, apiece on the exchange. The index has touched an intraday high at 6,168.15 and a low at 5,926.25 levels. While the 50-share basket ended at 23,176.05, up 90.10 points or 0.39 per cent amid buying in metal stocks.