Bajaj Finance shares surge as Nirmala Sitharaman’s cash injection for both NBFCs and small businesses will benefit Sanjiv Bajaj’s company
BSE / Business Insider India / Flourish
- FM Sitharaman announced a slew of measures, including a total liquidity infusion of ₹30,000 crore into non-banking finance companies.
- As a result, the
Bajaj Finance share pricesoared in early trade on Thursday, May 14, increasing by ₹90, up by nearly 5%.
“Strong set of fiscal measures announced by FM today covering many areas (details to be read). Particularly, this will help the MSME sector and smaller NBFCs that were asking for this,” said Bajaj Finance Vice Chairman
Strong set of fiscal measures announced by FM today covering many areas (details to be read). Particularly, this wi… https://t.co/2tiW4D2nUZ— Sanjiv Bajaj (@sanjivrbajaj) 1589376661000
On May 13, Finance Minister
Why is the Bajaj Finance stock soaring?
The Indian government has stepped in to offer some much-needed relief to the NBFC sector which is reeling under a liquidity crunch due to the shutdown.
FM Sitharaman also announced an additional liquidity infusion of ₹30,000 crore into NBFCs. Apart from this, the government will also expand an existing credit guarantee scheme that will bring benefits of ₹45,000 crore to the NBFC sector.
The Finance Minister revealed on May 13 that the government has sanctioned loans worth ₹77,383 crore between March 1 and May 4 to NBFCs and housing finance companies.
Further, SBI, the largest bank in India, has also decided to offer loan moratorium to NBFCs, which will help these companies preserve liquidity in the short term.
With the Indian economy shut down for nearly two months due to the coronavirus, there has been a severe liquidity crunch in all sectors. According to a CARE Ratings report dated April 17, the NBFC sector has been witnessing adverse impact of the lockdown in the personal loans and unsecured MSME loans segments due to layoffs, pay cuts and restricted demand.
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