Centrum Capital's shares soar nearly 20% after RBI grants small finance bank licence to Centrum-BharatPe consortium

The shares of Centrum Capital Ltd soared to nearly 20% in the morning trade on Wednesday after the Reserve Bank of India on Tuesday granted small finance bank licence to Centrum-BharatPe consortium.  

Recording Spurt in volume by more than 2.45 times after RBI's licence, the stock of the Centrum Capital Ltd hit day's high of Rs 47.65.  Centrum Capital Ltd shares were trading at Rs 45.90, up Rs 5.95 or 14.89% on the BSE around 12 pm. ,  

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“The Reserve Bank of India (RBI) has today issued a Small Finance Bank (SFB) license to the consortium of Centrum Financial Services (Centrum), the established and profitable small business lending arm of the Centrum Group and Resilient Innovations Private Limited (BharatPe), one of India's fastest-growing fintech companies,” Centrum and BharatPe said in a joint press release on Tuesday after market hours.

The company in a BSE filing said that it will inform exchanges about the commencement of business by ‘Unity Small Finance Bank’.  The new SFB, has been incorporated as ‘Unity Small Finance Bank’.  

The company further said, "It is the first time ever that two partners are uniting equally to build a Bank. The proposed business model is one of collaboration and open architecture, uniting all its stakeholders to deliver a seamless digital experience. Centrum’s successful MSME and Micro Finance businesses shall be merged into Unity Small Finance Bank."  

Commenting on the development, Jaspal Bindra, Executive Chairman, Centrum Group, said We are delighted to receive the license and excited to partner with BharatPe to create this new age bank, with a strong team.  

Founded in 1997, Centrum has diversified fee businesses and a lending platform for institutions and individuals. Institutional services include Investment Banking, Mid-corporates & SME credit and Broking to FIIs, Pension Funds, Indian Mutual Funds, Domestic Institutions etc