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On Thursday, Bajaj Finance Ltd's shares went down by 4%. This incident happened as the Reserve Bank of India (RBI) told the company to stop giving loans for two of its products, 'eCOM' and 'Insta EMI Card'. The RBI wants them to stop right away.
But, Bajaj Finance thinks this won't last long. They believe they can fix the problems in 2-3 weeks. After that, RBI will check their work and might remove the ban in another 4-5 weeks. Motilal Oswal Securities, a big finance company, said the RBI might watch Bajaj Finance for a while to see if they follow the rules properly before they stop the ban.
Even with this problem, Bajaj Finance can still give out Insta EMI Cards. The only thing they can't do is approve and give out loans digitally through these cards. This news made their stock price go down to Rs 6,940.
Motilal Oswal thinks that Bajaj Finance might give out fewer Insta EMI Cards for the next 45-90 days because of these restrictions. Normally, Bajaj Finance gets about 650,000 to 680,000 new Insta EMI card users every three months. These Insta EMI Cards are a big part of their business.
Motilal Oswal still says people should buy Bajaj Finance's stock. They think if the stock price goes down because of this news, it's a good chance to buy more.
RBI's decision came because Bajaj Finance didn't give important information to people who took loans under these two products. They also had some problems with the information they gave for other digital loans.
This news was released after the stock market closed on Wednesday. That day, Bajaj Finance's stock went down by 1.84%, ending at Rs 7,223.95. This happened even when the rest of the market was doing well.
