RBI lifts restrictions on Bajaj Finance, shares rises over 7%

Shivani Arora

Bajaj Finance shares inched over 7.50 per cent higher after the Reserve Bank of India (RBI) lifted its restrictions on sanctioning and disbursal of loans through eCOM and Insta EMI Card. The restriction was imposed in November last year.

The Bajaj group company stock emerged as the biggest gainer among the frontline indices. On the BSE, the stock rallied 7.54 per cent to Rs 7,400 while it climbed 7.51 per cent to Rs 7,400 on the NSE. The company’s market valuation climbed Rs 23,008.1 crore to Rs 4,49,205.63 crore.

“RBI lifting restrictions on some of Bajaj Finance’s products is highly positive for the stock,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Govt says Hassan MP travelled to Germany on diplomatic passport, ‘no clearance issued’

In November 2023, the Central Bank had directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products, eCOM and Insta EMI Card.

“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.

Shares of Bajaj Finance Ltd climbed nearly 8 per cent in Friday’s trade, with its market capitalisation moving past the Rs 4.5 lakh crore mark after the Reserve Bank of India (RBI) lifted ban on two of its lending products. The bans on eCOM and online digital ‘Insta EMI Card’ were in place since November 2023.

This has now been lifted, Bajaj Finance said adding it would now resume sanction and disbursal of loans in the two business segments including issuance of EMI cards.

About Bajaj Finance

Bajaj Finance Limited (BFL) is an Indian non-banking financial company headquartered in Pune.It is one of the leading non-banking financial companies (NBFCs) of India with a customer base of 83.64 million and holds assets under management worth ₹330,615 crore (US$41 billion), as of March 2024.

It subsidiary of Bajaj Finserv Ltd., is a deposit taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits.

It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers.

BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 69.14 million customers.

BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BB+/Positive and a short-term rating of B by S&P Global ratings.

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I am Shivani Arora, a media student who is working as a freelancer Content Writer, news writer and social media handler with different agencies. I am a post graduate student who is self motivated and a hardworking person. My main aim is to excel in my career by learning and exploring new things.
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