Magma Fincorp rises 9% on banking foray hopes

Moneycontrol Bureau

Magma Fincorp surged 9 percent in early trade Thursday after the company decided to make an application for banking license, but the stock erased some gains on profit booking.

"The Kolkata-based non-banking finance company approved that it make an application seeking a banking license in terms of the guidelines for licensing of new banks in the private sector dated February 22, 2013 and the associated clarifications issued by the Reserve Bank of India on June 03, 2013," the company said in its filing with exchange.

At 11:45 hours IST, the stock was quoting at Rs 90.00, up 6.57 percent on the Bombay Stock Exchange.
 
Other companies seeking banking license include Reliance Capital (that will apply for license in partnership with Sumitomo Mitsui Trust Bank & Nippon Life), Religare Enterprises (that decided to sell 6.1 percent stake to US-based Customers Bancorp), IDFC, Edelweiss Financial, Tourism Finance Corporation and SREI Infrastructure.