Future Retail up 12% as it applies for payment bank license

Shares of Future Retail surged over 12.5 percent intraday Monday on euphoria that the group has applied for a payment bank license with the Reserve Bank of India. The banking entity will be called NuFuture Payments Bank.

Sources indicate that IDFC is likely to pick stake in Future Group's Payments bank.

Future Group will leverage its presence in 168 cities across the country through Big Bazaar, KB’s, Nilgiris, Big Bazaar Direct and rural distribution network, Aadhaar, among others.

Earlier, Future Group oowned an non-banking financial company (NBFC) Future Capital (now called Capital First), which was sold to Warburg Pincus. It is present in the life and non-life insurance business in partnership with Italy's Generali Group.