Banking on hope: IDFC, L&T Finance rally as much as 5%

NEW DELHI: Shares of NBFCs such as IDFC and L&T Finance Holding Ltd rallied over 3 per cent in trade on Tuesday on hopes that they are the leading contenders to receive banking licences in a process seen entering its final stretch, dealers say.

Reacting to the news, IDFC rallied as much as 3.7 per cent in intraday trade, while L&T Finance Holdings rose nearly 4.9 per cent in trade today.

Unlisted India Post is also seen as a leading contender, according to analysts. An advisory committee is due to give its recommendations on bank licences by this weekend to the central bank, the Business Standard newspaper reported on Tuesday, citing India's Financial Services Secretary, Rajiv Takru.

IDFC closed the day at Rs 95.65, up 1.59%. L&T Finance Holdings Ltd ended the day at Rs 78.00, up 3.86%.