L&T Finance 'licensed' to rise!

NBFC stocks are doing very well today morning. Leading the pack currently is L&T Finance, which is up almost 4% at Rs.81.05, very close to its intra-day high of Rs.81.70. The upper circuit is at Rs.93.75.

This stock and other ‘aspirant’ NBFCs are doing well after the RBI yesterday extended the time to set up a bank. It said that applicants getting permits to set up new banks would have to do so within 18 months and not the earlier mentioned 12 months, failing which the licences were to be withdrawn.

It also stated that it will allow the aspirants to set up the non-operative financial holding company after giving in-principle approval. L&T Finance is the strongest contender for getting the banking license and thus any positive news on this spikes up the stock price.