Indian Overseas Bank, Punjab & Sind Bank, other PSU bank stocks rally up to 4% on report of accelerated govt stake sale

Shares of several public sector banks witnessed a sharp rise of up to 4 percent on Tuesday following reports that the government is preparing to accelerate its stake sale in select state-run lenders.

Indian Overseas Bank saw its share price rise by 4 percent to reach 38.99 rupees. Central Bank of India shares increased by 2.68 percent to 39.00 rupees, while UCO Bank gained 2.7 percent, trading at 32.14 rupees. Bank of Maharashtra shares climbed 2.8 percent to 56.15 rupees. Punjab and Sind Bank also saw a 3.4 percent jump, trading at 32.30 rupees on the Bombay Stock Exchange.

According to a report by CNBC Awaaz, the government is in the final stages of appointing merchant bankers to manage the disinvestment process. The Centre plans to sell up to a 20 percent stake in five public sector banks over the next six months through Qualified Institutional Placement and Offer for Sale methods.

The banks identified for the proposed stake sale include UCO Bank, Bank of Maharashtra, Indian Overseas Bank, Central Bank of India, and Punjab and Sind Bank. The proceeds from the sale are expected to support the banks’ capital and operational needs.