Central Bank, IOB, UCO Bank rise up to 4% in trade on Feb 25; here's why

The uptick in these stocks came after the DIPAM invited bids from merchant bankers to assist the government in its planned stake sale in public sector banks and listed financial institutions

PSU Bank stocks rise: Nifty PSU Bank index constituents, including Central Bank of India, Bank of Maharashtra, Indian Overseas Bank, UCO Bank, and Punjab & Sind Bank surged up to 4.4 per cent in intraday deals on the NSE, on Tuesday, February 25, 2025. 

 

Among individual stocks, Central Bank of India rose as much as 4.37 per cent to Rs 48, followed by Indian Overseas Bank (up 3.72 per cent to Rs 47.90), Punjab & Sind Bank (up 3.36 per cent to Rs 44.50), UCO Bank (up 3.31 per cent to Rs 39.32), and Bank of Maharashtra (up 2.76 per cent to Rs 50.25). Nifty PSU Bank index rose as much as 0.54 per cent to hit an intraday high of 5,985.80.

 

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The uptick in these stocks came after the Department of Investment and Public Asset Management (DIPAM) invited bids from merchant bankers to assist the government in its planned stake sale in public sector banks and listed financial institutions. 

 

As per the Request for Proposal (RFP) floated by DIPAM on Monday, the merchant bankers would be empanelled for a period of three years (extendable by one year) and would advise the government on the timing and modalities for diluting equity in select PSU banks and public financial institutions.  Read: Stock Market Holiday Tomorrow

 

The last date for merchant bankers to submit bids is March 27.

 

According to DIPAM, the Government of India intends to empanel Book Running Lead Managers (BRLMs) or Merchant Banking Services (MBSBs) for a three-year period (extendable by one year) in the context of diluting Government of India equity in select Public Sector Banks (PSBs) and listed Public Financial Institutions (PFIs) using Sebi-approved methods. The process will follow Sebi, RBI, IRDAI, and Stock Exchange regulations and guidelines.

 

Merchant bankers can apply for empanelment under two categories based on their capacity to handle capital market transactions. READ MORE

 

Other PSU bank stocks also gained but then slipped into the negative territory soon after. At 10:17 AM, Bank of India, Bank of Baroda, Indian Bank, PNB, Union Bank, and Canara Bank were all down in the range of 0.25 per cent to 0.62 per cent.