Banks privatization: No information so far, clarify Indian Overseas & Central Bank of India

• No information on banks privatization so far, Indian Overseas Bank & Central Bank of India clarified on Wednesday
• Shares of Indian Overseas Bank & Central Bank of India rise on the news of privatization

New Delhi: The central government is set to introduce the Banking Laws (Amendment) Bill 2021 in the Winter Session of Parliament. The purpose of the Bill is to privatise two public sector banks, amendments need to be made in Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980 as well as incidental amendments are required to be made in the Banking Regulation Act, 1949. However, the Indian Overseas Bank (IOB) and Central Bank of India have said that there has been no information regarding the reported privatization of the Banks. The Banking Laws (Amendment) Bill 2021 is among the list of 26 bills that are scheduled to be introduced during the session.

On Wednesday, Indian Overseas Bank shares surged 13.64 percent to close at Rs 22.50 on NSE, while Central Bank of India shares rose 9.98 percent to close at Rs 22.60 apiece on reports that the Central government is planning to privatise these banks."As regards the captioned media news, we do not have any information on privatization of the Bank as on date. There is no such negotiation or event taking place at the Bank," Central Bank of India said in an official statement issued on Wednesday to the exchange.

"We inform that we have 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," Indian Overseas Bank said.

Finance Minister Nirmala Sitharaman while presenting the Budget for 2021-22 had announced the privatisation of public sector banks (PSBs) as part of a disinvestment drive to garner Rs 1.75 lakh crore. "Other than IDBI Bank, we propose to take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22," the Finance Minister had said.

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