After the Reserve Bank of India (RBI) removed limitations on the company's two products, eCOM and the online digital "Insta EMI Card," bajaj Finance's share price surged by more than 6% in early trade on Friday.
According to the non-banking financing company Bajaj financing, loan approval and disbursement in these two business segments—including the issuing of EMI cards—will immediately be resumed.
"...the RBI has conveyed its decision to lift the said restrictions on eCOM and online digital "Insta EMI Card," with immediate effect, via its letter dated 2 May 2024, based on the remedial actions taken by the Company," Bajaj Finance said in a stock market filing on Thursday. On November 15, 2023, the banking regulator RBI issued an order to Bajaj Finance, directing it to cease the approval and disbursement of loans under its two lending products, the "Insta EMI Card" and "eCOM," effective immediately.
On November 15, 2023, the banking regulator RBI issued an order to Bajaj Finance, directing it to cease the approval and disbursement of loans under its two lending products, the "Insta EMI Card" and "eCOM," effective immediately.
The RBI took action against Bajaj Finance because the NBFC disregarded the criteria set forth by the central bank for digital lending, namely by failing to provide the borrowers under the two lending products with important fact sheets.
Bajaj Finance revealed last week that its consolidated net profit for the fourth quarter of FY24 was ₹3,825 crore, representing a 21% YoY increase. From ₹11,368 crore in Q4FY23 to ₹14,932 crore in Q4FY24, the company's total income increased.
Net interest income (NII) for Bajaj Finance rose 28% to ₹8,013 crore in Q4.
