Mumbai: The government’s Offer for Sale in Central Bank of India was subscribed 1.28 times on Monday, the last day of the two-day issue. The retail investor category received bids for 14.1% of the shares on offer on the second day of the issue. On Friday, institutional investors had placed bids for 76.86 crore shares against an offer size of 65.17 crore shares, translating to a subscription of 1.17 times the shares in the category, as per exchange data. Against 7.24 crore shares reserved for the retail category, bids were received for just about 1.02 crore shares. Overall, the OFS received cumulative bids for 9.24 crore shares against the total offer size of 7.24 crore shares. On Friday, the government said it wanted to sell up to an 8% stake, including a 4% base issue and an equivalent greenshoe option, in the OFS. The floor price was set at ₹31 per share, a discount of about 8.6% to Thursday’s closing price of ₹33.91.

Mumbai: Banking stocks rose on Monday, with public sector lenders leading gains as a decline in government bond yields improved sentiment.

The Bank Nifty advanced 2.3%, while the Nifty PSU Bank index gained 2.9%, outperforming the benchmark Nifty, which rose 1.3% to 24,031.70. Union Bank of India surged 5.3%, while Canara Bank, PNB, Bank of Baroda and AU Small Finance Bank gained between 2.7% and 4.6%. “It was a relief rally because of the 10-year government bond yield easing marginally. PSU banks have been under pressure from elevated yields,” said Vishal Narnolia, assistant VP – research, ICICI Securities.

Declining bond yields boost PSU banks’ mark-to-market gains on their large government securities portfolios and boost treasury income, making them more sensitive to rate moves than private lenders.

The 10-year government bond yield declined 7 bps to 7.03%, while the rupee strengthened to 95.23 per dollar from 96.69 on Friday, following signs of easing geopolitical tensions after reports of a potential US-Iran agreement. “The decline in yield was driven by softer crude oil prices and an appreciation in the Indian rupee following an easing of geopolitical uncertainty over the weekend,” said Narnolia.

Analysts said the recent underperformance in banking stocks was largely because of macro-economic concerns.

“An improving macro environment could aid loan growth and help reduce delinquencies as well,” said Shrikant Chouhan, head of equity research, Kotak Securities. The Bank Nifty remains down 7.4% so far in 2026, as against the 8.1% losses in the Nifty.
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Chouhan said he prefers private banks over PSU lenders due to comfortable valuations and a greater scope for return on assets improvement. “Our preferred private sector picks are HDFC Bank, Axis Bank, and ICICI Bank, while we like SBI and Union Bank in PSUs,” he said.

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Hindalco Industries‘ performance in the ongoing quarter will be better than the last quarter of FY26, and the next fiscal will mark the turnaround of its US arm Novelis, managing director Satish Pai told Nikita Periwal in an interview. Pai also said aluminium prices are likely to remain elevated at least until the end of 2026. Edited excerpts:

How much of Hindalco’s India business performance is driven by structural factors and how much is cyclical?

The upstream business for any commodity is driven by LME (London Metal Exchange)… Our profitability rose proportionately with the gains in LME, but our aluminium downstream business is not linked to LME and still had a great quarter. For copper, it was because of sulphuric acid and the downstream business. So, a part of it is related to pricing, but for manufacturing companies, a large part of it is also how well you run your operations and take care of your customers. Therefore, both factors have to be given credit.

How sustainable are these numbers?
The first quarter of FY27 will be better than the fourth quarter of FY26. We feel that prices will be in the range of $3,400-$3,500 per tonne at least up to the end of 2026. About 2.5-3.0 million tonnes of aluminium have gone off the market because of the West Asia crisis, and it will take six months to get these back online.

Between the higher prices of aluminium and higher input costs, what will profitability look like?
Commodity prices are much higher compared with our cost of production, so it is safe to say fiscal 2027 is going to be much stronger. The first three quarters of this year are going to be very strong.

Will the company’s performance in India overshadow that at Novelis?
Fiscal 2027 will be the turnaround year for Novelis-one, because of Oswego, which will restart next week, and the other reason is the commissioning of the hot mill in Bay Minette. Once these two are done, deleveraging will start from FY28. Ebitda will also start to stabilise at around $500 per tonne on a consistent basis. Next year, even if LME corrects, Novelis will be back. This year is a positive inflection point for Novelis.
Will the IPO for Novelis be planned by FY28?
No. The only focus for Novelis is the restart of Oswego and the full commissioning of Bay Minette.
Do you think the fires at Oswego have impacted investor sentiment for Novelis?
We have done some analysis to make sure this does not happen again. But what the fires have shown the market and the customers is that companies like Novelis have an advantage because they have scale. We have managed to keep supplying Ford Motor because of our worldwide presence and scale.