BS Bank Aspirex outpace the market in second consecutive month

JM Financial, L&T Finance Holdings, LIC Housing Finance, IDFC and Magma Fincorp have gained over 20% in Oct.

BS Bank Aspirex has outperformed the market for a second consecutive month, appreciating nearly 22% in past two months after a sharp rise in market price of the listed companies who applied for the new banking license.

BS Bank Aspirex is a new index by Business Standard covering 16 companies that have applied for banking licences with the Reserve Bank of India (RBI). The index has gained 13% in the month of October and rose 7.4% in September.

Since August, the Bombay Stock Exchange (BSE) S&P BSE Sensex and the National Stock Exchange (NSE) CNX Nifty has gained 13.7% and 15.1% respectively.

In the first two months, since July 1, the last day of applying for banking licence with RBI, BS Bank Aspirex had dipped 20% as compared to less than 7% decline in benchmark indices.

Among the individual stocks, JM Financial Services has rallied 33% and L&T Finance Holdings surged 28% on the BSE during the month of October.

LIC Housing Finance, IDFC and Magma Fincorp have gained 20% each, while Reliance Capital, India Infoline, Muthoot Finance, Bajaj Finance and Srei Infrastructure Finance were up 15% to 19%.

In his Second Quarter Review of Monetary Policy 2013-14 earlier this week, RBI Governor Raghuram Rajan said the central bank plans to issue new bank licences around January.

Former RBI Governor Bimal Jalan will hold the first meeting of a high-level panel to screen applications for permits of new private banks will be held on 1 November, the Reserve Bank of India (RBI) said in its monetary policy review on Tuesday.

On Friday, the panel is to decide the screening parameters. It will, when its task is over, send the recommendations to RBI; the latter will decide on the licences.

TOP GAINERS
Company	30/09/2013	31/10/2013	%chg
JM Financial	20.95	27.85	32.94
L&T Finance Holdings	64.55	82.55	27.89
IDFC	88.15	105.80	20.02
Magma Fincorp	63.30	75.80	19.75
LIC Housing Fin	187.95	224.65	19.53
Price on BSE in Rs
Data complied by BS Research