Effectively, shares of Bank of Maharashtra
soared 21 per cent, Bank of India (20 per cent), Indian Overseas Bank (23 per cent), and the Central Bank of India (20 per cent). In the past two days, shares of these banks have jumped over 40 per cent each.
That apart, other PSU banks' stocks advanced too with UCO Bank, J&K Bank, Punjab National Bank (PNB), Indian Bank, Bank of Baroda, SBI, and Canara Bank up between 1.5 per cent and 7 per cent.
Finance Minister Nirmala Sitharaman proposed to divest stake in two PSBs while unveiling Budget 2021 proposals. That apart, the FM alo set aside 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.