Indian Overseas Bank, Central Bank of India clarify on privatisation buzz; Stocks under pressure

IOB and CBI was in news that the government has shortlisted the two banks for privatisation.

Nov 25, 2021 12:11 IST India Infoline News Service

State-owned Indian Overseas Bank (IOB) and Central Bank of India (CBI) have clarified on privatisation buzz to stock exchanges. On Thursday, both the bank's stocks witnessed a lacklustre demand.

IOB and CBI rallied up to 20% yesterday on news that the government has shortlisted the two banks for privatisation.

However, both the stock pulled back from their super rally on Thursday after their clarification.

IOB said, "In this regard, we inform that we ha,:,e not received any communication regarding privatization of Bank from DFS/ Government of India and we are unaware of the reasons for the sudden movement in stock price. It may be due to speculation."

CBI said, "We inform you that Central Bank of India is a public sector bank promoted by the Government of India. As regards the captioned media news, we do not have any information on the privatization of the Bank as of date. There is no such negotiation/event taking place at the level of the Central Bank of India. It is further submitted that as of date, we do not have any information/announcement which in our opinion may have bearing on the price/volume behaviour in the scrip of the Bank."

At around 12.54 pm, IOB was trading at Rs22.10 per piece down 1.6% on Sensex. CBI was performing at Rs22.80 per piece flat compared to the previous closing.

As per reports, the government is likely to introduce the bank privatisation Bill in the winter session of Parliament which is said to begin from November 29.

Related Story

Open Free Demat Account (Rs699)
Open ZERO Brokerage Demat Account

  • 0

    Delivery Brokerage for Lifetime

  • 20

    Per order for Intraday, F&O, Currency & Commodity