Infrastructure financing company IDFC on Tuesday said the board has approved a proposal to seek licence from RBI for setting up a bank.

The board of the company at its meeting held on Tuesday has approved a resolution for making an application to the Reserve Bank of India (RBl) for obtaining a banking licence, IDFC said in a filing on the BSE.

 The licence would be sought based on the guidelines for licensing of new banks in the private sector dated February 22 and the associated clarifications issued by RBI on June 3, it said.

Shares of the company, which operates as an NBFC, closed at Rs 142.95 per unit, down by 1 per cent on the BSE. India has 26 public sector banks, 22 private sector banks and 56 regional rural banks.