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06 March, 2021 22:38 IST
Bajaj Finance slips after RBI imposes fine for violating norms
Source: IRIS | 06 Jan, 2021, 01.47PM
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 Shares of Bajaj Finance slipped on January 06 after RBI imposed penalty on the company for violating norms.

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 25 million on Bajaj Finance on Jan. 05, 2021 for violation of various directions, including on recovery and collection practices.

There was also violation of a specific direction to the company to ensure full compliance with Fair Practices Code (FPC) in "letter and spirit", the central bank said.

"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. There were also persistent/repeat complaints about recovery and collection methods adopted by the company," the RBI said.

A notice was issued to the company advising it to show cause as to why penalty should not be imposed for such non-compliance. After considering the company's reply to the notice, oral submissions made during the personal hearing and examination of additional submissions made by it, RBI concluded that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty, RBI said.

"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," the central bank said.

Shares of Bajaj Finance are trading at Rs 5,060.95, down Rs 60.05, or 1.17% at the Bombay Stock Exchange (BSE) on Wednesday at 12:15 p.m.

The scrip has touched an intra-day high of Rs 5,167.45 and low of Rs 5,045. The total volume of shares traded at the BSE is 105,371.In the earlier session, the shares lost 1.83%, or Rs 95.3, at Rs 5,121.

Currently, the stock is trading down 5.8% from its 52-week high of Rs 5,372.75 and above 183.83% over the 52-week low of Rs 1,783.10.



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