Shares in Shriram Transport Finance Co fell as much as 2.7 per cent on Tuesday after the Reserve Bank of India's clarifications on guidelines for bank license applications were seen hurting its odds of potential approval.
The commercial vehicle financier has been widely expected to apply for a banking license as India looks to expand the number of lenders in the country.
However, analysts said the RBI clarifications issued on Monday - including that only non-financial services companies and non-operative financial holding companies would be allowed to hold shares of the bank holding company - could reduce Shriram's chances of getting a license.
Shriram was down 0.8 per cent at 9:56 a.m.
Copyright Thomson Reuters 2012
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