Shares of two listed state-owned insurance companies, General Insurance Corporation of India or GIC Re and New India Assurance rallied as much as 20 per cent for the second straight session on reports that the government has shortlisted the banks for privatisation. General Insurance Corporation and New India Assurance were locked in the upper circuit of 20 per cent on the BSE today, for the second straight session. On Thursday, shares of GIC Re got locked at the 20 per cent upper circuit limit on the NSE. The stock is quoting at Rs 205.05, up 19.98 per cent on the NSE. (Also Read: Indian Overseas Bank Soars 50% In Three Sessions On Privatisation Report )
According to a February 16 report by news agency Reuters, the government referred to four banks, viz. Bank of India, Central Bank of India, Indian Overseas Bank, and Bank of Maharashtra as potential privatisation candidates. On February 1, while presenting Budget 2021, Finance Minister Nirmala Sitharman had also announced that the government will privatise four banks as well as an insurance company.
GIC Re is the largest reinsurer in the domestic reinsurance market in the country, while, New India Assurance Company, is the largest general insurance company in India. General Insurance Corporation reported a net profit of Rs 987.42 crore in the third quarter of the current financial year.
On the BSE, shares of New India Assurance were last trading 11.81 per cent higher at Rs 183.60. While the General Insurance Corporation was 19.98 per cent higher at Rs 205.05.