Bajaj Finance tanks 7 % post management updates on demonetisation impact
Demonetisation impact has been felt by one of the country’s largest NBFC company, as the management updated the investors on the impact being faced due to the demonetisation drive.
According to the presentation made to the investors, inquiries have dropped drastically post the currency demonetisation announcement. Inquiry levels have seen a decline of 17 per cent between November 21- 24 vis-à-vis pre demonetisation days.
While online traffic has increased, they have not come up to pre-announcement levels, said the company. Credit Card & Auto Loan inquiry volumes have increased beyond pre-announcement volumes after a slight dip immediately post the demonetisation move.
Impact on deployments
Both the two-wheeler and three-wheeler segments have seen very slow growth in demand post the demonetisation. In consumer durable finance which makes up a large part of the business, company has cut 18 per cent in Q3 FY17.
Digital product finance has cut 35 per cent business in Q3 FY17. Lifestyle product finance has seen a deep slowdown in the first 30 days of the demonetisation.
Disbursals
No impact has been seen in personal loan and professional loans. Slower demand post demonetisation has been seen in salaried personal loans, business loans, loan against property, self-employed loans, and there has been very slow growth in demand in rural lending, especially goal loan lending.
Reacting to the developments, shares of Bajaj Finance plunged close to 6 per cent at Rs 843.45 on NSE.