Tourism Finance Corp jumps 16% as it eyes banking license

Moneycontrol Bureau

Shares of Tourism Finance Corporation of India (TFCI) rallied more than 16 percent in early trade on Thursday, after the company has submitted an application with the Reserve Bank of India (RBI) for a banking license.

"TFCI, in terms of the approval by the board of directors, is submitting application with RBI for a banking licence," the company said in a filing on the Bombay Stock Exchange.

Also Read - All set to comply with RBI norms on banking license: IDFC

Industrial Finance Corporation of India (IFCI) has major stake of 42.50 percent in TFCI, while State Bank of India, LIC and Bank of India hold 9.19 percent, 7.70 percent and 4.70 percent, respectively.

TFCI functions as a specialised all-India development financial institution to cater to the financial needs of tourism industry.
 
At 10:15 hours IST, the stock was quoting at Rs 25.10, up 12.81 percent amid large volumes on the Bombay Stock Exchange.
 
Trading volumes increased more than 61 times to 2,05,411 equity shares as compared to its five-day average of 3,344 shares.

Market capitalisation of the company currently stands at Rs 202.60 crore.