Why Bajaj Finserv Share Is Falling

31 March 2024: Bajaj Finserv's share price has seen some decline recently, and there could be a few contributing factors:

1. Q3 Results (January 2024): Although Bajaj Finserv reported a profit increase in their Q3 results (December quarter) of 2023, the stock price fell. This could be due to a few reasons:
2. Slight Asset Deterioration: Investors might be cautious due to a minor decline in the quality of Bajaj Finserv's loan portfolio (asset quality).
3. Elevated Credit Costs: Higher credit costs, indicating potential loan defaults, could also be a concern for investors.
4. Lower Net Interest Margin: A decrease in the Net Interest Margin (NIM) compared to the previous quarter might signal reduced profitability.
5. RBI Regulations (November 2023): The Reserve Bank of India (RBI) banned two of Bajaj Finserv's products in November 2023 - Insta EMI Cards and e-Comm transactions. While the company is working on addressing the RBI's concerns, this regulatory action might have caused some uncertainty for investors.
6. Overall Market Conditions: The broader Indian stock market might be experiencing a correction, leading to a decline across various sectors, including NBFCs (Non-Banking Financial Companies) like Bajaj Finserv.

Overall, the decline in Bajaj Finserv's share price is likely due to a combination of factors specific to the company's recent performance and results, along with broader market movements.