Muhtoot Finance has rallied 8% to Rs 193 on back of heavy volumes on BSE, after the company said it would apply for a small bank license.
The stock opened at Rs 185 and touched a high of Rs 195 on BSE. The trading volumes on the counter surged more than three-fold with a combined 1.35 million shares traded in first half-an-hour on BSE and NSE.
According to Business Standard reports, Muthoot Finance, which had applied for a banking licence last year, said the NBFC would be keen to apply for a differentiated bank licence, adding it might apply for both types of licences, if regulations allowed this.
The Reserve Bank of India (RBI) on Thursday, issued draft guidelines for setting up of 'local feel' small banks, which will disburse small-ticket loans to farmers and businesses.
Such banks can be set up with a minimum capital of Rs 100 crore as against Rs 500 crore required for normal commercial banks, according to the guidelines.
Non-banking finance companies (NBFCs), micro finance institutions (MFIs), and Local Area Banks (LABs) can also opt for conversion into small banks, the PTI report suggests.
The stock opened at Rs 185 and touched a high of Rs 195 on BSE. The trading volumes on the counter surged more than three-fold with a combined 1.35 million shares traded in first half-an-hour on BSE and NSE.
According to Business Standard reports, Muthoot Finance, which had applied for a banking licence last year, said the NBFC would be keen to apply for a differentiated bank licence, adding it might apply for both types of licences, if regulations allowed this.
The Reserve Bank of India (RBI) on Thursday, issued draft guidelines for setting up of 'local feel' small banks, which will disburse small-ticket loans to farmers and businesses.
Such banks can be set up with a minimum capital of Rs 100 crore as against Rs 500 crore required for normal commercial banks, according to the guidelines.
Non-banking finance companies (NBFCs), micro finance institutions (MFIs), and Local Area Banks (LABs) can also opt for conversion into small banks, the PTI report suggests.
