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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