Payments bank nod: Bharti Airtel, Tech Mahindra shares jump nearly 3%

Shares of Bharti Airtel and Tech Mahindra were in demand today as these companies had yesterday got the Reserve Bank of India approval to set up non-lending payments banks as part of the financial inclusion drive.

Bharti Airtel was up 2.34 per cent at Rs 392.10, while Tech Mahindra gained 2.83 per cent to Rs 575.90 on the BSE. Shares of Aditya Birla Nuvo climbed 3.23 per cent to Rs 2,335.

Companies run by billionaires Mukesh Ambani and Kumar Mangalam Birla as well as telcos Bharti Airtel and Vodafone are among the 11 entities that got RBI approval to set up payments banks as part of the financial inclusion drive.

Reliance Industries, which had previously announced partnership with State Bank of India, Airtel M Commerce Services Ltd, Aditya Birla Nuvo, Vodafone m-pesa, Tech Mahindra and Department of Post got ‘in-principle’ approval from RBI to set up such niche banks.

Payments bank licence will allow companies to collect deposits (initially up to Rs 1 lakh per individual), offer Internet banking, facilitate money transfers and sell insurance and mutual funds.

Besides, they can issue ATM/debit cards, but not credit cards.