Shares of banking licence applicants in demand

Shares of eight firms that have applied for a banking license rose by 0.41% to 3.11% at 12:48 IST on media report that an advisory committee is due to give its recommendations on bank licences by this weekend to the Reserve Bank of India.

Muthoot Finance (up 3.11%), L&T Finance Holdings (up 3.06%), LIC Housing Finance (up 2.61%), Edelweiss Financial Services (up 2.34%), Bajaj Finance (up 1.92%), IDFC (up 1.70%), Reliance Capital (up 0.55%) and Religare Enterprises (up 0.41%), edged higher.

The S&P BSE Sensex was down 18.85 points, or 0.09% at 20,792.59.

Financial Services Secretary Rajiv Takru was quoted by the media as saying on Monday, 24 February 2014, that the advisory committee headed by former Reserve Bank of India (RBI) governor Bimal Jalan is expected to give its report by this weekend.

The committee, which is screening the 25 bank licence applications, will meet today, 25 February 2014. This might be its final meeting before it gives its recommendations to the central bank, report suggested.

RBI had constituted the Jalan committee to examine the fit-and-proper criteria, business plans, corporate governance practices, etc, of applicants.

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