RIL gains after applying for payments banking license

Reliance Industries rose 2.24% to Rs 928.20 at 9:37 IST on BSE after the company said it has applied for payments banking license.

Meanwhile, the BSE Sensex was up 97.94 points, or 0.34%, to 29,220.21.

On BSE, so far 53,000 shares were traded in the counter, compared with an average volume of 3.90 lakh shares in the past one quarter.

The stock hit a high of Rs 931 and a low of Rs 911.30 so far during the day. The stock hit a 52-week high of Rs 1,142.50 on 16 May 2014. The stock hit a 52-week low of Rs 794 on 28 February 2014.

The stock had underperformed the market over the past one month till 30 January 2015, rising 3.95% compared with 6.49% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 6.53% as against Sensex's 6.72% rise.

The large-cap company has an equity capital of Rs 3235.52 crore. Face value per share is Rs 10.

Reliance Industries (RIL) will be the promoter and State Bank of India (SBI) will be the joint venture partner with equity investment of upto 30%, RIL and SBI jointly announced after market hours yesterday, 2 February 2015.

Shares of SBI were up 0.71% at Rs 310.

The payments bank will leverage SBI's nationwide distribution network and risk management capabilities along with the substantial investments made by RIL in its retail and telecom businesses, the two companies said in a press release. It will deploy state-of-the-art technology, build scalable infrastructure and create extensive branch and business correspondent network in order to provide last-mile access and intuitive user experience to all sections of society, the press release added.

Besides promoting financial inclusion by providing banking and transaction services to unbanked, under-banked and small businesses, the partners see formation of the payments bank as an opportunity to lead and co-create an eco-system to provide accessible, simple and affordable banking solutions, digitize payments and act as catalyst towards a cashless society and democratise banking and payment services through massive adoption and low transaction costs, the joint press release indicated.

RIL's consolidated net profit fell 4.5% to Rs 5256 crore on 20.8% decline in net sales to Rs 93528 crore in Q3 December 2014 over Q3 December 2013.

RIL is into petroleum refining and marketing, exploration & production and manufacture of petrochemicals.

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