New Delhi, June 17 -- Shares of public sector banks (PSBs) rallied up to 4% on Tuesday following reports that the government is set to fast-track the process of offloading its stake in select lenders.

Indian Overseas Bank share price surged as much as 4% to Rs.38.99 apiece, while Central Bank of India shares rose 2.68% to Rs.39.00. UCO Bank stock price gained 2.7% to Rs.32.14, and Bank of Maharashtra shares advanced 2.8% to Rs.56.15. Meanwhile, Punjab & Sind Bank share price added 3.4% to trade at Rs.32.30 on the BSE.

According to a report by CNBC Awaaz, the government plans to accelerate the disinvestment process in public sector banks, with the appointment of merchant bankers in the final stages. The Centre aims to sell up to a 20% st...