Financial stocks rise on bank licence hopes | business | Hindustan Times
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Financial stocks rise on bank licence hopes

business Updated: Feb 25, 2013 22:23 IST
HT Correspondent
HT Correspondent
Hindustan Times
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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.

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.