Muthoot Fin big gainer on 'small bank' news

Muthoot Finance is currently the top gainer on the BSE, up almost 6% at Rs.189.55, with a 24 times surge in volumes. Its intra day high stands at Rs.195.40.

The stock is buzzing loud and clear today on the back of RBI guidelines for setting up small banks, which will disburse loans to farmers and businessmen.

RBI has issued the guideline wherein small banks with minimum capital of Rs.100 crore cane be set. More importantly, it has stated that NBFCs, micro finance institutions and Local Area Banks can also apply for conversion into small banks.

Following this announcement yesterday late evening, Muthoot has announced that it would be applying for a small bank license. Muthoot had applied for the standard banking license last year though its name was not shortlisted and it now hopes to fulfill its dream through this new route of small bank.