Muthoot, Manappuram surge up to 9% on RBI's draft guidelines
Mumbai: Shares of non-banking finance companies Muthoot Finance and Manappuram Finance soared as much as 9 percent in morning trade Friday after the Reserve Bank released draft guidelines for licensing of both payments banks and small banks.
The scrip of Muthoot Finance zoomed 8.8 percent to Rs 195.40, while Manappuram Finance surged 5.72 percent to Rs 24 on the BSE.
A week after the Budget announcement, the Reserve Bank 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," the 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, 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.