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Tourism Finance Corp soars on banking foray plans

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Capital Market
Last Updated : Jun 20 2014 | 9:31 AM IST

Tourism Finance Corporation of India spurted 11.46% to Rs 24.80 at 11:31 IST on BSE after the company said its board approved submitting an application for securing a bank licence from the Reserve Bank of India.

The company made the announcement after market hours on Wednesday, 19 June 2013.

Meanwhile, the S&P BSE Sensex was down 399.09 points, or 2.07%, to 18,846.61.

On BSE, 2.40 lakh shares were traded in the counter as against an average daily volume of 7,731shares in the past one quarter.

The stock hit a high of Rs 25.85 and a low of Rs 24.05 so far during the day. The stock had hit a 52-week high of Rs 30.35 on 7 January 2013. The stock had hit a 52-week low of Rs 20.95 on 28 March 2013.

The stock had underperformed the market over the past one month till 19 June 2013, sliding 6.51% compared with the Sensex's 5.13% fall. The scrip had also underperformed the market in past one quarter, falling 1.77% as against Sensex's 1.25% rise.

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The small-cap company has an equity capital of Rs 80.72 crore. Face value per share is Rs 10.

Applicants seeking new banking licences are required to submit their applications to the Reserve Bank of India (RBI) by 1 July 2013.

Entities in the private and public sector and NBFCs will be eligible to set up a bank through a wholly-owned Non-Operative Financial Holding Company (NOFHC), the RBI said. However, they need to have sound credentials, integrity and financials with a successful track record of 10 years.

Tourism Finance Corporation of India's net profit fell 9.2% to Rs 21.23 crore on 23.9% increase in operating income to Rs 43.97 crore in Q4 March 2013 over Q4 March 2012.

Tourism Finance Corporation of India gives financial assistance to hotels and non-conventional tourism projects such as amusement parks, ropeways, car rental services, ferries for inland water, transport, airtaxis, training institutes for hotel personnel, airport facilitation centres, etc.

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First Published: Jun 20 2013 | 11:36 AM IST

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