Nifty PSU Bank index gains 4%; Central Bank of India, IOB surge 20%

Shares of Central Bank of India and Indian Overseas Bank locked in 20% upper circuit on reports that the two financial institutions might be privatised.

Shares of Central Bank of India and Indian Overseas Bank (IOB) were locked in 20 per cent upper circuit on the National Stock Exchange (NSE) on Monday on the back of heavy volumes amid reports that the two financial institutions might be privatised.

The Centre has shortlisted Central Bank of India and Indian Overseas Bank for divestment, according to a report by TV channel CNBC Awaaz. The two lenders might see 51 percent sale in the first phase of disinvestment, the report said.

The stock of the Mumbai-based Central Bank was locked in upper circuit at Rs 24.30