New Delhi. On the basis of the NITI Aayog report, the Central Government has selected the Central Bank of India and Indian Overseas Bank working in the public sector for privatization. The central government will disinvest its share from these two public sector banks. The Center is set to sell 51 per cent stake in the first selection.
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As soon as the information of privatization came in the stock market, there was 20% upper circuit in the stock of Central Bank of India and Indian Overseas Bank. The shares of IOB were trading at Rs 19.85 before this news, which suddenly rose 19.80% to Rs 23.60. On the other hand, Central Bank’s shares rose 19.80% from Rs 20 to Rs 24.20. According to the latest update, for the privatization of these two banks, the central government will change some other laws along with changes in the Banking Regulation Act. Also, will discuss this issue with RBI.
Government to raise 1.75 lakh crore through privatization
The Central Government has taken the decision of privatization in both the banks on the basis of the recommendation of NITI Aayog. The Commission was entrusted with the responsibility of selecting the names of two public sector banks and one insurance company for privatization by the Center. Let us inform that Finance Minister Nirmala Sitharaman had announced the privatization of two public sector banks and one insurance company in the budget of the current financial year. The government has set a target of raising Rs 1.75 lakh crore through disinvestment for FY22. Currently, the market value of Central Bank of India and Indian Overseas Bank in the stock market, as per their share prices, is Rs 44,000 crore. In this, the market cap of Indian Overseas Bank (IOB) is Rs 31,641 crore.
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Web Title: Central Govt will Eell 51% Stake From CBI And IOB, 20% Upper Circuit In Shares