E-Paper
Financial stocks rise on bank licence hopes
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.
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.
