L&T surges on hopes of banking license for the group

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L&T surges on hopes of banking license for the group
Shares in Larsen and Toubro surged more then 2 per cent, a day after the RBI issued clarifications on new banking licences, which could pave the way for the group to enter into banking. The shares in the company were last traded at rs 1421, up 2.4 per cent over Monday's close.

The Reserve Bank of India on Monday said in- principle approval for setting up of new banks will now be valid for 18 months, up from earlier proposed one year. Issuing clarification to queries on new bank licences, the RBI said the companies which would be eligible to apply must have a public shareholding of at least 51 per cent. "..companies forming part of the Promoter Group whereof companies in which the public hold not less than 51 per cent of the voting equity shares shall hold not less than 51 per cent of the total voting equity shares of the NOFHC (holding company)", it said.

Besides, the intending applicants would have to approach other regulators to bring in entities regulated by them under the bank holding company, the RBI said.

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Read more about: larsen
Story first published: Tuesday, June 4, 2013, 11:01 [IST]
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