Bajaj Finance Shares Rise 1% After RBI Lifts Restrictions
May 03, 2024 16:53
Bajaj Finance shares ended nearly 1% higher after the Reserve Bank of India lifted restrictions on the company's eCOM and Insta EMI Card lending products.
New Delhi, May 3 (PTI) Shares of Bajaj Finance trimmed most of their sharp intra-day gains and ended nearly 1 per cent higher amid massive selling in the broader equity market.
During the early trade, the stock soared over 7.50 per cent after the Reserve Bank of India (RBI) lifted restrictions on the company on sanctioning and disbursal of loans through eCOM and Insta EMI Card.
The stock rallied 7.54 per cent to Rs 7,400 during the morning trade on the BSE. However, later it gave up most of the gains and ended at Rs 6,932.80 apiece, up 0.75 per cent.
On the NSE, it ended at Rs 6,927 per share, up 0.64 per cent after climbing 7.51 per cent to Rs 7,400 in intra-day.
Heavy selling pressure in the equity benchmarks Sensex and Nifty took the shine off a huge rally in the company's stock.
The 30-share BSE Sensex dropped 732.96 points or 0.98 per cent to settle at 73,878.15 after soaring 484.07 points earlier in the day. The NSE Nifty also declined 172.35 points or 0.76 per cent to 22,475.85.
The stock emerged as the biggest gainer among the BSE Sensex components.
The company's market valuation climbed Rs 3,206.41 crore to Rs 4,29,137.77 crore.
"RBI lifting restrictions on some of Bajaj Finance's products is highly positive for the stock," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
In November last year, the Central Bank directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products -- eCOM and Insta EMI Card -- due to non-adherence of the company to the extant provisions of digital lending guidelines.
"Now, we wish to inform that the RBI, vide its letter dated 2 May 2024, based on the remedial actions taken by the company, has conveyed its decision of lifting the said restrictions on eCOM and online digital 'Insta EMI Card', with immediate effect," the company said in a filing to the stock exchanges on Thursday.
The company further said it would now resume sanction and disbursal of loans in the two business segments, including the issuance of EMI cards.
"The company remains committed to ensure adherence and compliance of regulatory guidelines," it added.
"The removal of restrictions on Bajaj Finance's eCOM adds to the upbeat market sentiment," Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.
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