PSU Banks buzzing loud

The Parliament will go into session from 29th Nov and for the market the big news is that the Govt plans to introduce the Banking Laws (Amendment) Bill 2021 in this Winter session.

This is the promised privatisation of two PSU banks which the FM made in the Budget and the names doing the rounds are Bank of Maharashtra, Central Bank of India and Indian Overseas Bank.

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.

IOB briefly hit the 20% UC at Rs.23.80 and is now trading 12% higher at Rs.22; Central Bank of India rose 15% to hit an intraday high at Rs.23.65 and Bank of Maharashtra rose 9.5% to Rs. 21.35.