NBFCs rally after RBI issued guidelines for new banking licenses
25th February 2013 10:18 AM
Non- Banking Financial Companies (NBFCs) surged on Monday after India's central bank released guidelines on new banking licenses in the private sector on Friday. The Reserve Bank of India said the existing NBFCs may be permitted to promote a new bank or convert themselves into banks.
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.
The initial minimum paid-up voting equity capital for a bank shall be Rs 5 billion. The bank shall get its shares listed on the stock exchanges within three years of the commencement of business by the bank.
SREI Infrastructure Finance climbed the most with rise of 5.97%, followed by Mahindra & Mahindra Financial Services (5.65%), L&T Finance Holdings (4.95%), LIC Housing Finance (2.73%), Reliance Capital (2.03%), Power Finance Corporation (1.59%) and Indiabulls Financial Services (0.49%).
- India's bleeding insurgencies: Lessons from Latin America
- Western Ghat report has imperialist mindset: Ecologist
- Lot more to India-China ties than border stand-off: Experts
- Major industrial conglomerates making a beeline for Haryana
- Man kidnapped 23 years ago finds kin thanks to Google Maps
- Bangalore's techies start 'brand tattoos' craze
- Indian circuses struggle to adapt after court bans
- Want hassle-free tatkal ticket? Personally visit special counters
- Rs 8K-crore plan for upgrading ICVs of Army
- Man arrested for attempt to attack TV host Ranjini Haridas
- Sreesanth, 2 other players 'confess'; more players under scanner
- The toxic truth about ripe mangoes
- Kalabhavan Mani missing after assaulting forest staff
- Shift me from ‘Anda’ cell, pleads Sanjay Dutt
- Tamil Brahmi script dating to 500 BC found near Erode
- Indefinite strike leaves city parched; mineral water bottles fly off shop shelves