Dewan Housing Finance Corporation rose 2.99% to Rs 485.50 at 11:51 IST on BSE after the company said it has applied to the RBI to become a small finance bank.
The announcement was made after market hours on Friday, 30 January 2015.
Meanwhile, the BSE Sensex was down 143.96 points, or 0.49%, to 29,038.99.
On BSE, so far 1.03 lakh shares were traded in the counter, compared with an average volume of 2.34 lakh shares in the past one quarter.
The stock hit a high of Rs 489 and a low of Rs 472 so far during the day. The stock hit a record high of Rs 501.95 on 19 January 2015. The stock hit a 52-week low of Rs 199.10 on 14 February 2014.
The stock had outperformed the market over the past one month till 30 January 2015, rising 18.03% compared with 6.49% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 29.43% as against Sensex's 6.72% rise.
The mid-cap company has an equity capital of Rs 128.65 crore. Face value per share is Rs 10.
Dewan Housing Finance Corporation (DHFL) announced that pursuant to the guidelines announced by the Reserve Bank of India (RBI) for licensing of "small finance bank" (SFB) in the private sector on 27 November 2014, the company on Friday, 30 January 2015, with the approval of its board filed an application seeking banking license from RBI for "small finance bank".
DHFL has a proven track record of being in the financial service business as a housing finance company for over 30 years with the focus on lower and middle income groups. If granted the license, DHFL will convert itself into a small finance bank. The DHFL small finance banks vision is to emerge as a "big bank for small finance," the company said in a statement.
The management is of the view that this conversion into small bank will enable the company to transform into a more robust and scalable business model which aligns well with its long term growth and profitability aspirations, while continuing to focus on its core capabilities geared towards financial inclusion, the company added.
Dewan Housing Finance Corporation's net profit rose 15.36% to Rs 159.65 crore on 17.30% increase in total income to Rs 1526.53 crore in Q3 December 2014 over Q3 December 2013.
Dewan Housing Finance Corporation provides loans for purchase or construction of residential houses.
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