Indian Overseas Bank, Punjab & Sind Bank, Other PSU Bank Stocks Rally up to 4% on report of accelerated govt stake sale

Shares of Public Sector Banks (PSBS) Rallied Up to 4% on Tuesday Following Reports that the government is set to fast-track the process of offloading its stake in select lenders.

Indian Overseas Bank Share Price Sruised as Much as 4% to 38.99 Apiece, while Central Bank of India Shares Rose 2.68% to 39.00. UCO Bank Stock Price Gained 2.7% to 32.14, and bank of maharashtra shares advanced 2.8% to 56.15. Meanwhile, Punjab & Sind Bank Share Price Added 3.4% to Trade at 32.30 on the bse.

According to a report by CNBC Awaaz, The Government Plans to Accelerate the disinvestment process in public sector banks, with the appointment of merchant bankers in the final stages. The center aims to sell up to a 20% stake in five psu banks over the next six months through qualified Institutional Placement (QIP) and offer for Sale (OFS) Routes.

The proposed stake sell will involve UCO Bank, Bank of Maharashtra, Indian Overseas Bank, Central Bank of India, and Punjab & Sind Bank. Proceeds from the stake sale are expected to be utilized to meet the respective banks’ Capital and Operational Requirements, The Report Added.