Select NBFCs rally after RBI issues guidelines for new banking licenses
Mahindra and Mahindra Finance Services, Bajaj Finserv, SREI Infrastructure Finance, Religare Enterprises and L&T Finance Holdings are trading higher in the range of 5-7% on BSE
Select non-banking finance companies (NBFC) shares are in focus in early morning deals after the Reserve Bank of India (RBI) has issued guidelines for the new bank licences, which will pave the way for both corporate entities and NBFC to begin banking operations.
Mahindra and Mahindra Finance Services, Bajaj Finserv, SREI Infrastructure Finance, Religare Enterprises and L&T Finance Holdings are trading higher in the range of 5-7% on the Bombay Stock Exchange (BSE).
RBI has set the last date of applications till July 1. No specific industry was barred from applying, although draft rules issued in August 2011 had barred real estate companies and brokerage firms.
The minimum capital required by applicants for licence is Rs 500 crore, and foreign shareholding in the new banks will be capped at 49% for the first five years. The new banks should be set up under a non-operative financial holding company (NOFHC), the RBI said.
Among the individual stocks, Religare Enterprises has rallied 7% to Rs 290, followed by SREI Infrastructure Finance and Mahindra and Mahindra Financial Services are up by 6% each at Rs 38.15 and Rs 210 respectively. L&T Finance Holdings and Bajaj Finserv are up 5% each at Rs 85.70 and Rs 864 respectively.
Mahindra and Mahindra Finance Services, Bajaj Finserv, SREI Infrastructure Finance, Religare Enterprises and L&T Finance Holdings are trading higher in the range of 5-7% on the Bombay Stock Exchange (BSE).
RBI has set the last date of applications till July 1. No specific industry was barred from applying, although draft rules issued in August 2011 had barred real estate companies and brokerage firms.
The minimum capital required by applicants for licence is Rs 500 crore, and foreign shareholding in the new banks will be capped at 49% for the first five years. The new banks should be set up under a non-operative financial holding company (NOFHC), the RBI said.
Among the individual stocks, Religare Enterprises has rallied 7% to Rs 290, followed by SREI Infrastructure Finance and Mahindra and Mahindra Financial Services are up by 6% each at Rs 38.15 and Rs 210 respectively. L&T Finance Holdings and Bajaj Finserv are up 5% each at Rs 85.70 and Rs 864 respectively.