Bajaj Finance share price falls over 3% as RBI bars lending via two digital products
Bajaj Finance share price declined nearly 4% on Thursday after the Reserve Bank of India (RBI) barred the non-banking finance company (NBFC) from lending under its two products. Bajaj Finance shares declined as much as 3.97% to ₹6,937.15 apiece on the BSE.
The central bank has directed the company to stop sanction and disbursal of loans under its two lending products namely, ‘eCOM’ and ‘Insta EMI Card’, with immediate effect, particularly with respect to non-issuance of Key Fact Statements (KFS) to the borrowers under these two lending products and the deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the Company, Bajaj Finance said in a regulatory filing.
Read here: Bajaj Fin asked to halt lending via 2 products
Further, these supervisory restrictions will remain in place till the deficiencies observed are made good by the company to the satisfaction of RBI, in terms of issuance of Key Fact Statements to the borrowers.
Bajaj Finance said that the KFS were being issued for the loans booked under the above mentioned two lending products. However, based on the supervisory concerns raised by the RBI, the company said it will undertake a detailed review of the KFS and implement requisite corrective actions to the satisfaction of the RBI at the earliest.
According to the company, there will be no material financial impact on it due to this RBI action.
However, analysts see a limited impact of this RBI’s move as Insta EMI Card base is 5% of Bajaj Finance’s total clients.
Also Read: Day trading guide for stock market today: Six stocks to buy or sell on Thursday — 16th November
Analysts believe that Bajaj Finance shares will be under pressure in the near term, but the issue can be resolved soon as it seems more of an operational breach rather than a major violation.
Brokerage firm CLSA expects Bajaj Finance’s profits to be impacted by 6% while ban is in effect.
At 9:30 am, Bajaj Finance share price was trading 2.00% lower at ₹7,079.45 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
