The Centre has shortlisted Central Bank of India (CBI) and Indian Overseas Bank (IOB) for divestment, CNBC Awaaz has reported.
The two lenders might see 51 percent sale in the first phase of disinvestment.
The government will amend the Banking Regulations Act, and some other banking laws for divestment, the news channel reported.
Following the news, shares of CBI and IOB surged 20 percent on June 21.
The Centre has set an ambitious divestment target of Rs 1.75 lakh crore for FY22.
The government's plans to sell its stakes in Air India, Bharat Petroleum Corporation (BPCL), Shipping Corporation of India and some other companies have been disrupted due to the COVID-19 pandemic.
(This is a developing story. Please check back for updates.)