BIO and Central Bank shares rally to sales buzz

Meanwhile, BIO and the Central Bank told the stock exchanges on Wednesday that they had not received any information from the government on the move to privatization.

Shares of Indian Overseas Bank (IOB) and Central Bank of India rallied on Wednesday amid speculation the government made the decision to privatize these lenders, as suggested by Niti Aayog. IOB shares closed up 13.1% at Rs 22.45 on BSE, while Central Bank shares rose 10.5% to Rs 22.70. Stocks jumped more than 20% in intra-day trading before cutting a few gains.

Meanwhile, BIO and the Central Bank told the stock exchanges on Wednesday that they had not received any information from the government on the move to privatization.

Speculation over privatization gained momentum a day after the Centre’s legislative program suggested that the 2021 Banking (Amendment) Bill for the privatization of two public sector banks be considered in the winter session of Parliament.

In a regulatory filing, IOB said: “… we have no information on the bank’s privatization to date. No such negotiation / event takes place at the bank. The Central Bank of India also said: “… we inform that we have not received any communication regarding the privatization of the bank from the DFS / Indian government and that we do not know the reasons for the sudden move. of the share price. It may be due to speculation ”.

The bill to be considered by Parliament seeks to “make amendments to the Banking Companies (Acquisition and Transfer of Businesses) Acts, 1970 and 1980 and ancillary amendments to the Banking Regulation Act, 1949 in the context of of the announcement of the 2021 Union budget concerning the privatization of two banks in the sector ”.

Fitch had said in June that plans to privatize two PSBs in FY22 could be delayed, as the “bold move” faced the risk of political opposition and structural challenges, including increased strain on balance sheets at the aftermath of the Covid-19 epidemic.

Government officials, however, said work is in full swing and the names of eligible candidates will soon be officially declared.

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