Centrum Capital shares zoom over 19% on RBI nod to banking licence

Centrum Capital shares zoomed over 19 per cent today after the financial services firm won a small finance bank licence from the Reserve Bank of India (RBI).

Centrum Capital stock opened with a gain of 17.15 per cent at Rs 46.80 against previous close of Rs 39.95 on the Bombay Stock Exchange (BSE).

Later, the share touched an intraday high of Rs 47.65, rising 19.27 per cent on the BSE. Centrum Capital share is trading higher than 5 day, 20 day, 50 day, 100 day, and 200 day moving averages.

 The stock has gained 171.22 per cent since the beginning of this year and risen 165 per cent in one year.

Total 8.16 lakh shares of the firm changed hands amounting to turnover of Rs 3.78 crore on BSE.

Market cap of the firm rose to Rs 1,909 crore on BSE.

The share climbed to a 52-week high of Rs 58.50 on June 21, 2021 and fell to a 52-week low of Rs 15.15 on December 14, 2020.

"The Reserve Bank of India (RBI) has issued a Small Finance Bank (SFB) licence to the consortium of Centrum Financial Services (Centrum) and Resilient Innovations Private Limited (BharatPe)," said Centrum Capital.

The new small finance bank has been incorporated as "Unity Small Finance Bank", it said.

It is the first time that two partners are uniting to build a bank. The proposed business model is one of collaboration and open architecture, uniting all its stakeholders to deliver a seamless digital experience.

Centrum's successful MSME and Micro Finance businesses shall be merged into Unity Small Finance Bank, said the financial services firm.

"We are delighted to receive the license and excited to partner with BharatPe to create this new age bank, with a strong team. We aspire to be India's first digital bank," Centrum Group Executive Chairman Jaspal Bindra said in a statement.