IDFC surges on getting in-principle approval to start banking ops

The stock moved up over 3% in early deals on heavy volumes

IDFC has moved up 3.1%  at Rs 132 on the Bombay Stock Exchange (BSE), after the Reserve Bank of India (RBI) granted in-principle bank licence to the company. The news came in post trading hours on Wednesday.

At 9:20am, a total of 14.11 lakh shares changed hands on the counter, as compared with an average volume of 10.54 lakh shares in the past one quarter on the BSE. Besides IDFC, Kolkata-based microfinance lender, Bandhan, has also got the central bank's nod.

"The ‘in-principle’ approval granted will be valid for 18 months, during which the applicants have to comply with the requirements under the guidelines and fulfil the other conditions as may be stipulated by the RBI," the banking regulator said in a statement, adding that licences for commencement of banking operations will be given after the entities have fully complied with the norms.

“Until a regular licence is issued, the applicants would be barred from doing banking business,” the central bank said.