What is the reason behind Bank of India’s shares surge?

Mumbai: Bank of India shares rose for the second day on Tuesday. On Monday, there was an upper circuit in its stock. It had an upper circuit at a speed of 20 percent. On Monday, the stock closed at Rs 40.80, up 18 per cent. On Tuesday, the share price reached Rs 52 in the morning. However, on Wednesday, it showed mild softening. At around 11:50 in the day, it was running at Rs 49.15 with a softening of 1 per cent.

The central government is going to start the process of disinvestment. It is said that she can sell her stake in some public sector banks. She wants to improve the health of public sector banks. Sanjeev Bhasin, director, IIFL Securities, said, “The market interest in some government banks has increased as the discussion on privatization starts. Investors are following the stocks with higher upside. They feel this may double their money. Government Wants to push reforms in the banking system. “

The government can privatize one or two government banks to make them stronger. The government nationalized banks in 1969. The government believes that at this time there is a need to create a strong banking system in the country. The condition of many state-run banks is poor. To improve their health, the government has continued to provide financial assistance. Despite this, his health has not improved much.

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A group of senior government officials has started discussing the proposal for privatization of some public sector banks. This process may take time, as the government’s focus is to deal with the corona epidemic. Siddharth Purohit, analyst at SSC Institutional Equities, said, “Bank of India’s shares have gained momentum due to sudden interest in investors. It will be important to see if the bank’s prices are able to stay high.”

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