People in the know also said that Bank of Maharashtra and Central Bank are the top two candidates that has been favoured for privatisation, though the Indian Overseas Bank has also found favour for the exercise either this year or possibly later.
Read more about Bank of Maharashtra soars 16% as over 1 million shares change hands on BSE on Business Standard. The stock witnessed a breakout on the upside on February 15 after news agency Reuters reported that the bank could be one of the four PSBs which the government may privatise in FY22
Government is considering mid-sized to small banks for its first round of privatisation.
Shares of Indian Overseas Bank, Bank of India, Central Bank of India and Bank of Maharashtra rallied as much as 20 per cent on report that the government has shortlisted four mid-sized state-run banks for privatisation. The four banks on the shortlist are Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India, news agency Reuters reported citing sources.
Following this report, Indian Overseas Bank stock price rose by its daily maximum limit of 20 per cent to hit an intraday high of Rs 13.20. Central Bank of India advanced 15.6 per cent to hit high of Rs 16.12, Bank of India climbed 15 per cent to hit fresh 52-week high of Rs 67.70 and Bank of Maharshtra rallied 20 per cent to hit a high of Rs 19.10.