Muthoot, Manappuram surge up to 4% on RBI's draft guidelines

Jul 18 2014, 18:28 IST
Comments 0
The central bank also issued draft guidelines for setting up of payment banks.(Reuters) The central bank also issued draft guidelines for setting up of payment banks.(Reuters)
SummaryShares of Manappuram Finance rose by 3.30 to settle at Rs 23.45. Intra-day, it had surged 5.72 per cent to Rs 24.

Shares of non-banking finance companies, Muthoot Finance and Manappuram Finance, ended with as much as 4 per cent gains today after the Reserve Bank released draft guidelines for licensing of both payments banks and small banks.

Muthoot Finance's scrip ended 3.76 per cent higher at Rs 186.20 after surging 8.8 per cent to Rs 195.40 during the day on the BSE.

Shares of Manappuram Finance rose by 3.30 to settle at Rs 23.45. Intra-day, it had surged 5.72 per cent to Rs 24.

A week after the Budget announcement, RBI had yesterday issued draft guidelines for setting up of 'local feel' small banks, which will disburse small-ticket loans to farmers and businesses.

The central bank also issued draft guidelines for setting up of payment banks, which will cater to marginalised sections of society, including migrant labourers, for collecting deposits and remitting funds.

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.

"Both payments banks and small banks are 'niche' or 'differentiated' banks, with the common objective of furthering financial inclusion," RBI had said while issuing draft guidelines for licensing of payments banks and small banks.

The existing non-bank pre-payment instrument issuers, non -banking finance companies (NBFCs), corporate BCs (Business Correspondents), mobile telephone companies, super-market chains, companies, real sector cooperatives and public sector entities may apply to set up a payments bank.

NBFCs, micro finance institutions (MFIs), and Local Area Banks (LABs) can also opt for conversion into small banks.

"Preference will be given to professionals from banking or financial sector, NBFCs and MFIs to set up small banks, if they meet the 'fit and proper' criteria," the draft had said.

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...