For a second straight day, on privatization announced for two of the lenders, there has been enthusiasm on the street, with the index trading higher by 5 percent even in a rangebound trade, when majority of the Nifty indices are trading in the red.
Here are some of the PSBs that hit upper circuit in trade today:
Bank of Maharashtra
Bank of India
Punjab and Sind Bank'
Union Bank of India
In the Budget 2021, to mop up government's revenue amid fiscal deficit, there have been suggested plan to divest stake in 2 of the state run lenders and Reuters reported that the centre has shortlisted some 4 banks for the move.
Shares of Indian Overseas Bank in two day's have gained a whopping 40 percent. That apart, the FM also allocated some Rs 20,000 crore for recapitalisation of PSBs. "The government will introduce legislative amendments to privatise these banks in the current Budget session. Of the Rs 1.75 trillion divestment target set for the next fiscal, the government expects Rs 1 trillion to come from the divestment of its stake in PSBs and financial institutions," she had said.