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    Centrum Capital surges 16% as it gets RBI nod to set up small finance bank

    Synopsis

    The joint venture floated by the Centrum Group and digital payments startup Bharatpe for launching a small finance bank will infuse Rs 1,800 crore capital into troubled Punjab & Maharashtra Cooperative Bank (PMC) on its merger with the proposed bank, a top Centrum official has said. On Friday, the RBI gave an in-principle approval to Centrum Financial Services, to set up a small finance bank (SFB) provided it took over the troubled PMC Bank.

    FILE PHOTO: A man walks out of the Bombay Stock Exchange (BSE) building in MumbaiAgencies
    New Delhi: Shares of Centrum Capital surged 16 per cent to Rs 58.50 on Monday, scaling its new 52-week high.after the Reserve Bank of India (RBI) gave an "in-principle" approval to Centrum Financial Services for setting up a small finance bank (SFB). Both Centrum and BharatPe are ready to take over the crisis-ridden Punjab & Maharashtra Co-Operative (PMC) Bank as equal partners.

    However, the counter gave up some gains to trade at Rs 54.25 at 12.10 pm. BSE Sensex was trading 236.81 points or 0.45 per cent down at 52,107.64 at the same time.

    The joint venture floated by the Centrum Group and digital payments startup Bharatpe for launching a small finance bank will infuse Rs 1,800 crore capital into troubled Punjab & Maharashtra Cooperative Bank (PMC) on its merger with the proposed bank, a top Centrum official has said.

    On Friday, the Reserve Bank gave an in-principle approval to Centrum Financial Services, a step-down arm of the diversified financial services group, to set up a small finance bank (SFB) provided it took over the troubled PMC Bank.

    Shares of Centrum Capital have been on a roll in 2021. The counter has delivered over 220 per cent return in the ongoing year thus far. The scrip has surged 41 per cent in the last one month.

    The in-principle approval has been in specific pursuance to Centrum Financial Services' offer on February 1, 2021 in response to the expression of interest notification dated November 3, 2020 published by the PMC Bank, the RBI said.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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