Bajaj Finance shares bounce back after early decline; settle nearly 2 pc up

New Delhi: Shares of Bajaj Finance rebounded from early lows to end nearly 2 per cent higher on Thursday amid value buying at lower levels and optimism in the broader equity market.

The stock declined 4 per cent in early trade following the Reserve Bank's direction to the firm to stop sanction and disbursal of loans under its two lending products due to non-adherence to lending guidelines. The stock fell 3.97 per cent to the day's low of Rs 6,937.15 on the BSE in early trade. However, later it recovered all the early lost ground and ended at Rs 7,365.85, up 1.96 per cent. At the NSE, it declined 4 per cent to Rs 6,931.25 during the early trade. But, later made a comeback, rising 1.89 per cent to settle at Rs 7,361. In traded volume terms, 1.29 lakh shares of the company were traded at the BSE and over 45.57 lakh shares at the NSE during the day.

Rising for the second session in a row, the 30-share BSE Sensex climbed 306.55 points or 0.47 per cent to settle at 65,982.48. The Nifty gained 89.75 points or 0.46 per cent to 19,765.20. The Reserve Bank on Wednesday directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products, eCOM and Insta EMI Card, with immediate effect due to the non-adherence of the company to the extant provisions of digital lending guidelines.

"This action is necessitated due to non-adherence of the company to the extant provisions of digital lending guidelines of the Reserve Bank of India, particularly non-issuance of Key Fact Statements 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," the RBI said in a statement. These supervisory restrictions will be reviewed after the rectification of said deficiencies to the satisfaction of the RBI, the central bank added.