Muhtoot Finance has rallied 8% to Rs 193 on back of heavy volumes on BSE, after the company said it would apply for a small bank license.
The stock opened at Rs 185 and touched a high of Rs 195 on BSE. The trading volumes on the counter surged more than three-fold with a combined 1.35 million shares traded in first half-an-hour on BSE and NSE.
According to Business Standard reports, Muthoot Finance, which had applied for a banking licence last year, said the NBFC would be keen to apply for a differentiated bank licence, adding it might apply for both types of licences, if regulations allowed this.
The Reserve Bank of India (RBI) on Thursday, issued draft guidelines for setting up of 'local feel' small banks, which will disburse small-ticket loans to farmers and businesses.
Such banks can be set up with a minimum capital of Rs 100 crore as against Rs 500 crore required for normal commercial banks, according to the guidelines.
Non-banking finance companies (NBFCs), micro finance institutions (MFIs), and Local Area Banks (LABs) can also opt for conversion into small banks, the PTI report suggests.
The stock opened at Rs 185 and touched a high of Rs 195 on BSE. The trading volumes on the counter surged more than three-fold with a combined 1.35 million shares traded in first half-an-hour on BSE and NSE.
According to Business Standard reports, Muthoot Finance, which had applied for a banking licence last year, said the NBFC would be keen to apply for a differentiated bank licence, adding it might apply for both types of licences, if regulations allowed this.
The Reserve Bank of India (RBI) on Thursday, issued draft guidelines for setting up of 'local feel' small banks, which will disburse small-ticket loans to farmers and businesses.
Such banks can be set up with a minimum capital of Rs 100 crore as against Rs 500 crore required for normal commercial banks, according to the guidelines.
Non-banking finance companies (NBFCs), micro finance institutions (MFIs), and Local Area Banks (LABs) can also opt for conversion into small banks, the PTI report suggests.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%