LIC Housing gains on reports of applying for banking licence

Meanwhile, the S&P BSE Sensex was up 37.31 points or 0.2% at 18,756.60.

On BSE, 1.04 lakh shares were traded in the counter as against average daily volume of 2.73 lakh shares in past two weeks.

The stock hit a high of Rs 262.50 and a low of Rs 255 so far during the day. The stock had hit a record high of Rs 300 on 2 January 2013. The stock had hit a 52-week low of Rs 209.10 on 21 March 2013.

The stock had outperformed the market over the past one month till 20 June 2013, sliding 6.57% compared with the Sensex's 7.44% fall. The scrip had also outperformed the market in past one quarter, rising 16.83% as against Sensex's 0.87% fall.

The large-cap housing finance company has equity capital of Rs 100.93 crore. Face value per share is Rs 2.

LIC Housing Finance has reportedly decided to apply for a banking licence and the company's board has cleared a proposal in this regard. Applicants seeking new banking licences are required to submit their applications to the Reserve Bank of India (RBI) by 1 July 2013.

Entities in the private and public sector and non-banking finance companies (NBFCs) will be eligible to set up a bank through a wholly-owned Non-Operative Financial Holding Company (NOFHC), the RBI said. However, they need to have sound credentials, integrity and financials with a successful track record of 10 years.

LIC Housing Finance's net profit rose 24.7% to Rs 316.16 crore on 22.8% growth in total income to Rs 2074.75 crore in Q4 March 2013 over Q4 March 2012.

LIC Housing Finance is one of the largest housing finance companies in India having one of the widest networks of offices across the country and representative offices at Dubai & Kuwait.

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