Shares of non—banking financial firm Magma Fincorp Ltd today climbed over 6 per cent after the company said it will apply to Reserve Bank of India (RBI) for seeking a bank licence.

After surging nearly 9 per cent in intra—day trade, the stock finally ended the day at Rs 90, up 6.57 per cent from its previous close on the BSE.

At the NSE, Magma Fincorp’s stock ended the day 5.26 per cent higher at Rs 90.

The board of the company yesterday approved the proposal of making an application to the RBI for seeking bank licence in terms of the guidelines for licensing of new banks in the private sector dated February 22, 2013, Magma Fincorp said yesterday.

The announcement was made after market hours yesterday.

Earlier this month, RBI while issuing clarification on new bank licence guidelines said, the entities getting licences to open new banks will be given 18 months to open branches against 12 months prescribed earlier, and promoters would have to transfer their holdings to the non—operative financial holding company (NOFHC) in a stipulated period.

The NOFHC envisages holding of the bank and other regulated financial services entities of the promoters under the NOFHC and prudential exposure norms for the regulated entities.

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