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HindustanTimes Wed,01 Oct 2014

Financial stocks rise on bank licence hopes

HT Correspondent, Hindustan Times  Mumbai, February 25, 2013
First Published: 22:22 IST(25/2/2013) | Last Updated: 22:23 IST(25/2/2013)

Shares of financial service companies surged as much as 9% on the Bombay  Stock Exchange (BSE) on Monday following the Reserve Bank of India's announcement of new rules for applicants late on Friday.

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While Religare Enterprises surged 9% to R294, L&T Finance Holdings jumped 5%, Srei Infrastructure Finance rose 4%, Bajaj Finserv went up by 3.4% and LIC Housing Finance jumped 3% on the BSE.

While dozens of companies are expected to apply for licences by the July 1 deadline, the banking sector regulator is expected to be very selective.

"We expect a large number of applications from most large business houses and NBFCs (non-banking finance companies). With limited licenses on offer, the screening process will assume importance," said Nischint Chawathe, analyst, Kotak Securities.


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