Bajaj Finance stock surges as RBI lifts ban on key products

BNE News Desk

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New Delhi: Bajaj Finance witnessed a significant surge in its stock price today following the Reserve Bank of India (RBI) lifting the ban on two crucial lending products offered by Bajaj Finance, 'eCOM' and 'Insta EMI Card,' which had been in effect since November 2023. 

Investors responded swiftly to the news, driving Bajaj Finance's stock price up by nearly 8 percent in intraday trading. The stock reached a high of 7,400 on the Bombay Stock Exchange (BSE). Market analysts observed a surge in trading volumes as investors rushed to capitalize on the positive sentiment surrounding Bajaj Finance's prospects.

In tandem with the surge in stock price, Bajaj Finance also witnessed a substantial increase in its market capitalization. It added Rs 32,000 crore intraday, pushing its market capitalization beyond the Rs 4.5 lakh crore mark.

With the ban on 'eCOM' and 'Insta EMI Card' lifted, Bajaj Finance announced its readiness to resume the sanction and disbursal of loans in these segments, including the issuance of EMI cards.

Market analysts had been closely monitoring the situation, anticipating regulatory relief for Bajaj Finance following the NBFC's proactive measures and formal request for a review. The lifting of the ban has been welcomed by analysts, who view it as a positive catalyst for Bajaj Finance's growth trajectory. However, some analysts caution that challenges may persist, particularly regarding net interest margins (NIMs) and credit costs.

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BNE News Desk