#Budget2010 : Have NBFC? Become a Banker

Budget 2010 has provided an avenue for manufacturing companies that also run non-banking finance companies to get banking licences. Over the past 15 years or so, we have seen NBFCs like Kotak and Times Guarantee becoming banks. Now such conversions may happen in a larger number. Some of the top contenders to go in for banking licences are Reliance Capital, Religare Finance, Shriram Transport group, L&T finance and Magma Fincorp.

Now, consider Magma Fincorp which was traded this afternoon at Rs. 247.80 (up 7 percent over yesterday’s close). This company has an interesting shareholding pattern with Reliance Infrastructure accounting for 9.82 percent India Capital Fund at 7.52 percent and Citigroup Global at 7.52 percent.