Tourism Finance Corporation shares surge over 16% on banking foray plans

MUMBAI: Shares of Tourism Finance Corporation of India Ltd ( TFCI) today soared by over 16 per cent after the company said its board has approved a proposal to seek licence from RBI for setting up a bank.

Reacting to the news, shares of the company opened the day on a firm note and as the trade progressed it further gained 16.17 per cent to Rs 25.85 on the BSE.

At the NSE, the stock zoomed up by 15.17 per cent to Rs 25.80.

"TFCI, in terms of the approval by the board of directors, is submitting application with Reserve Bank of India for banking licence," the company had yesterday said.

Industrial Finance Corporation of India Ltd (IFCI) is the majority owner of the TFCI with 42.50 per cent stake, while State Bank of India, LIC and Bank of India have 9.19 per cent, 7.70 per cent and 4.70 per cent, respectively.

TFCI function as a specialised all-India development financial institution to cater to the financial needs of the tourism industry.

Rally in the stock sharply outperformed a weak broader market where the BSE benchmark Sensex was trading at 18,856.01, down 389.69 points during the afternoon trade.