Shares of IOB increased by 20 percent
Bank Privatization: The government has started preparations for the privatization of two PSU banks. The government can bring the Banking Law Amendment Bill for the privatization of two PSU banks in the winter session of Parliament. Government Central Bank of India and Indian Overseas Bank (IOB-Indian Overseas Bank)
) can be privatized. According to the report, the government can make changes in the banking law in the winter session. Winter session is starting from 29th November. On Wednesday, the stock of both the banks registered a jump of 20 percent due to the news of privatization.
Let us tell you that in the Budget 2021, Finance Minister Nirmala Sitharaman had announced the privatization of two public sector banks. Now work has started in this direction. This includes the privatization of several other non-financial state-owned entities and the listing of wholly owned Life Insurance Corporation of India.
Shares of IOB increased by 20 percent
Due to the news of privatization, the share of IOB registered a rise of 20 percent in today’s business. The stock rose 20 percent to Rs 23.80 on the BSE. While the share of Central Bank of India rose 15 percent to reach the level of Rs 23.65.
Target to raise 1.75 lakh crore from disinvestment
Presenting the budget on February 1, the government had set a target of Rs 1.75 lakh crore for disinvestment and privatization. Along with this, the Finance Minister had announced that two public sector banks and one insurance company would be privatized in the current financial year. Apart from this, it was also announced to bring LIC IPO. Along with this, the government will also collect funds by selling its stake in BPCL.
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