Bajaj Finance share fell 2.5% on Wednesday morning after the apex lender Reserve Bank of India (RBI) imposed a monetary penalty of Rs 2.50 crore on the firm. RBI fined Bajaj Finance for using coercive methods of recovery from its borrowers, and violation of general guidelines and one specific direction issued by the regulator. Bajaj Finance was also found to have violated a specific direction to ensure full compliance with FPC in letter and spirit.
Bajaj Finance share price opened higher at Rs 5,123 against its previous close of Rs 5,121 today. Later, the stock fell 2.5% to the day's low of Rs 4,991 on BSE. The stock also hit an intraday high of Rs 5,167.45 during early trade. The stock has fallen 5.64% in the last 5 days.
Bajaj Finance stock stands higher than 50, 100 and 200-day moving averages but lower than 5, 20-day moving averages.
The stock fell 5.9% in the last week and 5.2% since the beginning of the year. Meanwhile, the stock has risen over 2.9% in a month and 25% in one year.
"This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 58 G read with clause (aa) of sub-section (5) of section 58B of the Reserve Bank of India Act, 1934, taking into account the failure of the company to ensure that its recovery agents did not resort to harassment or intimidation of customers as part of its debt collection efforts and thereby failing to adhere to the aforesaid directions issued by RBI," the regulator said in a statement on its website.
"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers," RBI added.
Market capitalisation of the firm stood at Rs 3. 02 lakh crore as of today's session. The stock has touched a 52 week high of Rs 5,372.75 and a 52-week low of Rs 1,783.10.