Aditya Birla Nuvo in the green

Aditya Birla Nuvo rose today to Rs.1554.95, just Rs.10 short of its 52-week high of Rs.1664. Volumes are also robust at over 1 lakh share getting traded as against two-week average volume of less than 7500 shares.

The market is happy as Aditya Birla Payments Bank has received final licence from the Reserve Bank of India (RBI) to set up a payments bank.

Aditya Birla Idea Payments Bank is a 51:49 joint venture (JV) between Aditya Birla Nuvo Ltd (ABNL) and telecom major Idea Cellular.

Payment Banks are like a mini-bank, they can accept a restricted deposit, which is currently limited to Rs.1 lakh per customer while they cannot issue loans and credit cards.

This is the seventh company to receive this final RBI license. When the concept of Payment bank was mooted, many companies applied and 11 received the in-principal approval. Of this, Tech Mahindra, Cholamandalam Investment, and a consortium of Dilip Shanghvi, IDFC Bank and Telenor Financial Services opted out.