India's Bajaj Finance jumps most in nearly two years after lending ban lifted

Bajaj Finserv

03/05/2024 05:34

BENGALURU, May 3 (Reuters) - Shares of India's Bajaj
Finance  BJFN.NS  rose as much as 7.5% on Friday, their biggest
intra-day jump in nearly two years, after the Indian central
bank reversed a five-month ban on some of its lending products.
    The non-banking lender's stock had dropped nearly 5% since
the ban was placed in November. That included a 7.7% slide last
Friday after the company gave a disappointing forecast for the
current fiscal year, largely due to the ban.
    The Reserve Bank of India reversing its ban lifted the
overhang on Bajaj Finance and the stock could see a relief rally
after being under pressure since results last week, Morgan
Stanley analysts said.
    The impact on profit before tax could be limited to 1.5% in
the April-June quarter, compared with a nearly 3.5% hit in the
January-March quarter, the brokerage estimated in a note.
    The Street's focus will now turn to fundamentals after the
RBI move, CLSA analysts said in a note.
    The lifting of the ban also sent shares of Bajaj Finserv
 BJFS.NS , Bajaj Finance's holding company, 3.9% higher.
    Bajaj Finance's stock is now little changed so far this
year, compared with a 2.8% gain in the finance index and a 4.8%
rise in the benchmark Nifty 50 index  .NSEI .

 (Reporting by Sethuraman NR in Bengaluru; Editing by Savio
D'Souza)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))