Monday, 30th October 2017

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Bajaj Finance battles rumours

It is the second firm in less than a fortnight to issue a clarification on rumours circulating in the market or social media

  • Published 26.03.20, 1:27 AM
  • Updated 26.03.20, 1:27 AM
  • a min read
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Finance stocks have been under pressure after the coronavirus outbreak on fears that it could lead to higher bad loans on their books apart from affecting their loan growth. (Shutterstock)

Non-banking finance company Bajaj Finance on Wednesday clarified that it had not held any conference call as it responded to the circulation of a “fake” news in the social media.

It is the second firm in less than a fortnight to issue a clarification on rumours circulating in the market or social media. Finance stocks have been under pressure after the coronavirus outbreak on fears that it could lead to higher bad loans on their books apart from affecting their loan growth.

“It has come to our notice that certain details about a con-call invite allegedly scheduled yesterday - March 24 - between Bajaj Finance Ltd and analysts/ investors, at 4pm was in circulation to discuss on the impact of Covid-19 on growth and asset quality. We clarify that the company did not schedule the aforesaid con-call with investors/analysts. The aforesaid con-call invite was totally false/fake and could have been circulated with malafide intent,” the company said in a regulatory filing with the stock exchanges on Wednesday.

Bajaj Finance added that investors should not take cognisance of such false or fake news without verifying the same with the company or on the websites of the stock exchanges. Shares of the NBFC on Wednesday settled with gains of over four per cent, or Rs 100.10, to end at Rs 2,585.90.

There was some good news for the sector recently when the Reserve Bank of India (RBI) extended the priority sector loan classification for bank loans disbursed to NBFCs. However, the sector wants more reliefs.

Earlier, IndusInd Bank had to also issue a press statement where the lender reiterated that it is financially strong, well-capitalised, profitable and a growing entity with strong governance.

“Market rumours about individual exposures doing the rounds are bloated and outlandish and nowhere near the truth. The bank makes full disclosures every quarter on its loan book profile. Various market rumours and speculation incorrectly reflect on the bank’s financial health are totally misplaced, motivated and not based on facts,” the private sector lender had said.

Shares of the bank, however, remained under pressure. The IndusInd Bank scrip ended 3.57 per cent lower at Rs 301.20.

Its shares have slipped more than 83 per cent from its 52-week high of Rs 1,835 in March last year.