Nifty Bank Stocks - Were These Two Government Banks Selected For Privatization A Stormy Rise In The Stock Due To The News_Pic Credit Google

Nifty Bank Stocks – Were These Two Government Banks Selected For Privatization? A Stormy Rise In The Stock Due To The News

Nifty Bank Stocks – Were These Two Government Banks Selected For Privatization? A Stormy Rise In The Stock Due To The News – On Monday, there was a stormy rise within the shares of two small public sector banks. The shares of both the banks got upper circuit within a couple of minutes. Shares of Indian Overseas Bank climbed 20 per cent to shut at Rs 23.60. While the shares of financial institution of India also closed at Rs 24.20, up 20 percent.

Nifty Bank Stocks – Were These Two Government Banks Selected For Privatization? A Stormy Rise In The Stock Due To The News

In fact, minister of finance Nirmala Sitharaman had announced during the budget speech that aside from IDBI Bank, 2 more public sector banks would be privatized within the next fiscal year . Now it’s reported that the govt has selected Indian Overseas Bank and financial institution of India for privatization.

The market has taken the news of the privatization of those two banks. thanks to which the shares of those banks got upper circuit. The market price of both the private banks financial institution of India and Indian Overseas Bank within the stock exchange is Rs 44,000 crore consistent with their share price. during which the market cap of Indian Overseas Bank (IOB) is Rs 31,641 crore.

According to media reports, for the privatization of those two banks, the central government will change another laws along side changes within the Banking Regulation Act. Also, there’ll be discussion with RBI regarding privatization. NITI Aayog had recommended the names of those two banks for privatization.

Nifty Bank Stocks – Were These Two Government Banks Selected For Privatization? A Stormy Rise In The Stock Due To The News

Recently, there was news that the govt may initially seal the privatization of small banks. From this it’ll be known what quite problems come during privatization. there’ll be little risk in privatization of small banks. That’s why the names of Indian Overseas Bank and financial institution of India are arising .

In fact, the Modi government had made it clear way back that the amount of state banks would be reduced. during this series, 4 banks were formed by merging 10 banks last year. consistent with experts, the govt wants to urge obviate those banks, which are continuously running in losses.

Significantly, the govt has set a target of raising Rs 1.75 lakh crore from disinvestment within the fiscal year 2021-22. minister of finance Nirmala Sitharaman announced this within the budget. For 2020-21, the govt had set a disinvestment target of Rs 2.1 lakh crore, which wasn’t achieved.

Apart from IDBI Bank, the govt had announced the privatization of two public sector banks and an insurance firm within the budget. at the present there are 12 public sector banks within the country. Barring a couple of banks, the financial health of most banks is poor, and not during a position to assist .

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