Bajaj Finance share price jumps over 7% after RBI lifts restrictions on its eCom and Insta EMI Card
₹7,400.00 apiece on the BSE. Meanwhile, Bajaj Finserv shares also surged more than 6%.
The non-banking finance company Bajaj Finance said that it would now resume sanction and disbursal of loans in these two business segments including issuance of EMI cards. “...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," Bajaj Finance said in a stock exchange filing on Thursday.
Read here: RBI removes curbs on Bajaj Finance, allows resumption of lending through eCom and Insta EMI Card The banking regulatory RBI, on November 15, 2023, had ordered Bajaj Finance to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect. The RBI action against Bajaj Finance came after the NBFC failed to abide by the central bank’s digital lending guidelines — particularly non-issuance of key fact statements to the borrowers under the two lending products.
Analysts believe though removal of these restrictions by the RBI is on expected lines, the relief within less than 6 months not only comes as a positive surprise but also endorses the company’s management’s ability to course-correct quickly when needed. “The embargo on the two products had a significant impact on Bajaj Finance’s profitability, and its new loan book was lower by 0.8 mn in Q4 and by 1.2 mn in FY24.
Lifting of this ban would result in higher customer acquisition, along with improved fee income," said Avinash Singh, Senior Research Analyst at Emkay Global Financial Services. Also Read: Bajaj Finance vs Jio Financial: Which stock should you buy after Q4
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