Bajaj Finance shares in news as RBI orders NBFC to stop lending under two products

Shares of Bajaj Finance Ltd could be under some pressure in Thursday's trade as the Reserve Bank of India (RBI) asked it stop sanctioning and disbursing 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 to the borrowers under these two lending products, in addition to the deficiencies in the key fact statements issued in respect of other digital loans sanctioned by the NBFC.

The announcement came post market hours of Wednesday. The scrip fell 1.84 per cent to Rs 7,223.95 in an otherwise strong trading session on Dalal Street.

Bajaj Finance informed stock exchanges that the 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.

To this, Bajaj Finance said it would undertake a detailed review of the KFS and implement requisite corrective actions to the satisfaction of the RBI at the earliest.

For now, Bajaj Finance has temporarily suspended sanction and disbursal of new loans under ‘eCOM; and online/digitally on ‘Insta EMI Card’.

"We re-affirm our commitment to rectify observations of the RBI in Key Fact Statement andcomply with RBI Directions at the earliest, and will continue with our endeavor to provide seamless financial services to our customers," Bajaj Finance said.

The RBI release suggested tht the supervisory restrictions would be reviewed upon therectification of the said deficiencies to the satisfaction of RBI.

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