Nifty PSU Bank index gains 4% after the news of divestment in the Central Bank of India and Indian Overseas Bank
Published On: Monday, June 21, 2021 | By: Team KnowMyStock
Shares of Central Bank of India, Indian Overseas Bank (IOB) J&K Bank were locked in 20 percent upper circuit on the National Stock Exchange (NSE) on Monday on the back of heavy volumes amid reports that the two financial institutions CBI and IOB might be privatized. On the back of the rally in these three stocks Nifty PSU Bank index surged as much as 4.4 percent to 2,484.15 levels. All of the 13 constituents of the pack traded in the green with maximum gains seen for the counters such as J&K Bank, Indian Overseas Bank, and Central Bank. “Disinvestment news in CBI and IOB lead the rally in PSU Banking basket. For taking ahead of the divestment process, the center shall amend the Banking Regulations Act together with other banking laws.
The privatization plan was announced in the Union budget for 2021-22 as a part of the government’s broader divestment goals for FY22. It includes the privatization of several other non-financial state-owned entities and the listing of the wholly-owned Life Insurance Corporation of India.
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