PSU Bank shares rise amid report of government stake sale: Indian Overseas Bank, Punjab & Sind Bank among top gainers

Shares of public sector banks were trading higher on Tuesday, June 17, after reports suggested that the government will fast-track selling its stake in the banks. 

The report further stated that money raised by selling stake in PSUs will be used for the bank’s own requirements. The government’s hiring process of merchant bankers in the divestment department is in the final stages for the same plan.

Following this, shares of PSBs surged on Tuesday. The Nifty PSU Bank index touched an intraday high of 7,026.35 after opening at 6,969.60. Last seen, it was trading at the 6,929.0 level.

Further, Maharashtra Bank (0.62%), Indian Bank (0.43%), State Bank of India (0.28%), and Punjab National Bank (0.20%) also advanced on Tuesday.

Finance Minister Nirmala Sitharaman is scheduled to meet heads of public sector banks (PSBs) on June 27 to discuss a host of issues, including the review of financial performance and the implementation of various government schemes.

Apart from that, a comprehensive review of various segments and progress in government schemes, including the Kisan Credit Card, PM Mudra and three social security (Jan Suraksha) schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) might be discussed during the meeting.