Losers in banking licence race take a knock; fall up to 10%

Tags: News
Shares of banking licence aspirants today fell by as much as 10 per cent after the Reserve Bank granted in-principle approval for new bank licences to IDFC and Bandhan Financial Services.

L&T Finance Holdings slumped 9.71 per cent, while IFCI lost 8.51 per cent at the BSE.

Similarly, shares of SREI Infrastructure Finance tumbled 7.80 per cent, JM Financial plunged 7.68 per cent, Reliance Capital lost 4.51 per cent, Muthoot Finance (2.56 per cent) and LIC Housing Finance (1.37 per cent).

Ending days of suspense, the Reserve Bank yesterday granted banking licences to infrastructure financing firm IDFC and microfinance institution Bandhan from among 25 applicants that included corporate heavyweights ADAG Group, Aditya Birla Group and Bajaj Group.

The RBI agreed to consider the application of India Post in consultation with the government and advised other applicants to apply afresh after the central bank comes out with new guidelines on granting licences 'on tap'.

The bank licences were awarded a day after the Election Commission granted approval to the RBI to go ahead with the process.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Banks might be bracing for intense rate war for retail loans

    While select small banks have been slashing their deposit rates by five to 10 basis points over the past few weeks for short term adjustments to avoid

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: Intertemporal choices

Intertemporal choice is the study of the relative value people ...

Parvez Imam

Why we all have blood on our hands

What does the Jammu and Kashmir flood make us think? ...

Dharmendra Khandal

The peculiar possibilities of animal poop

You can tell a lot about an animal by its ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture