RIL, SBI surge as shareholders sign agreement for payments bank JV

NEW DELHI: Shares of Reliance Industries and State Bank of India surged in Monday's trade after they signed a shareholder agreement to set up a joint venture for a payments bank .

RIL will have 70 per cent share in the JV as a promoter while SBI will get the remaining 30 per cent stake.

“RIL and SBI had entered a non-binding memorandum of understanding in February to set out the principal terms. This would bring together the nation's largest banking network and a pan-India telecom and retail setup,” the RIL said in statement to the bourses.

RBI granted in-principle approval to RIL as a promoter in September 2015 for the setting up of the payments bank.

Reacting to the development, RIL scrips closed 1.34 per cent higher at Rs 986.50, while SBI shares ended at Rs 222.85, up 1.46 per cent.