SKS plummets 15.5% after missing out on small banks licence

Shares of SKS Microfinance slumped 15.5 per cent today after the company failed to find a place in the list of 10 entities that were granted approval to set up Small Finance Banks by the RBI.
The stock plummeted by 15.39 per cent to settle at Rs 381 on the BSE. Intra-day, it crashed 17.95 per cent to Rs 369.45.
On the NSE, it plunged 15.55 per cent to Rs 380.65.
The scrip of Dewan Housing Finance Corporation also fell by 2.19 per cent to Rs 216.35 on BSE. During the day, the scrip dipped by 5.37 per cent to Rs 209.30.

"Shares of SKS Micro and Dewan Housing were seen in action today after the companies failed to find their names in the list of companies that were granted small bank licenses by RBI," Achin Goel, Head Wealth Management & Financial Planning, Bonanza Portfolio Ltd said.
Seeking to promote financial inclusion, RBI on Wednesday granted approval to 10 entities, including Ujjivan Financial Services and Equitas Holdings, to set up Small Finance Banks to provide basic banking services to small farmers and micro industries.

Other entities to get the Reserve Bank's nod are Au Financiers (Jaipur), Capital Local Area Bank (Jalandhar), Disha Microfin (Ahmedabad), ESAF Microfinance (Chennai), Janalakshmi Financial (Bengaluru), RGVN (North East) Microfinance (Guwahati), Suryoday Micro Finance (Mumbai) and Utkarsh Micro Finance (Varanasi).

The in-principle approval has been granted within a month of RBI giving nod to 11 entities for launching Payments Banks.
As per the guidelines, a Small Finance Bank will primarily undertake basic banking activities of acceptance of deposits and lending to unserved and under-served sections, including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.