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MUMBAI: Mid-sized public sector banks on Tuesday rose after a media report said the government plans to privatise over half of state-owned banks. Shares of Bank of Maharashtra gained 14%, Central Bank of India 12%, UCO Bank 10%, Bank of India 7.3% and Indian Overseas Bank 5%.

According to the Reuters report, the government plans to sell majority stake in Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab & Sind Bank.

"A plan would be laid out in a new privatisation proposal the government is currently formulating, and this would be put before the cabinet for approval," the Reuters report said.

The government is working on a privatisation plan to help to raise money by selling assets in non-core companies and sectors when the government is strapped for funds due to lack of economic growth caused by the coronavirus pandemic.

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