RBI lifts restrictions on Bajaj Finance's eCOM, 'Insta EMI Card'
New Delhi: Bajaj Finance shares slumped more than four per cent on Tuesday on elevated credit costs from B2C businesses and NIM contraction. Bajaj Finance shares are trading at Rs6,855, down 4.63 per cent on BSE. The stock is the top loser in the BSE Sensex.
Motilal Oswal Financial Services said in a report that 3QFY24 NIM declined 25bp QoQ to 12.4% while the reported NIM contracted 10bp QoQ. We model a NIM compression of 20bp in FY25 due to the expected rise in the cost of borrowings and difficulty in passing on any further interest rate hikes to customers.
The report pointed to a minor deterioration in asset quality with credit costs elevated. Credit costs were higher due to elevated Rural B2C delinquencies and lower collection efficiencies in Urban B2C segment.
