NBFCs end lower, post Bharat Financial Inclusions operations presentation

Shares of NBFCs (non-banking financial companies) ended sharply lower in trade, post micro- lender, Bharat Financial Inclusion's operations presentation, wherein company posted a grim picture of its operations that have been hit by currency demonetisation.

Bharat Financial Inclusion is the second in the list of NBFCs, which have come out with their respective operations presentations for the period post currency demonetisation announcement on November 8.

The presentation stated that collection efficiency remained lower and disbursements declined after demonetisation drive. According to the presentation released by Bharat Financial, collection efficiency with 4 weeks’ lag stands at 97.7 per cent. However, cumulative collection efficiency improved to 91.2 per cent for the period between Nov 11 to Dec 15 from 89.3% for the period Nov 11 to Nov 25.

Company continues to disburse in centres, only if the collection efficiency of that centre is 100 per cent. Collection efficiency has been fixed at 96 and 93 per cent with a lag of 4-weeks for Maharashtra and Uttar Pradesh, respectively, as they have the maximum number of centres, which have zero collections.

Reacting to the presentation, the stock slumped close to 9 per cent intra-day before closing at Rs 586, down 2.85 per cent. Other companies too witnessed selling pressure with the likes of Bajaj Finance, closing down 2 per cent, and Bajaj Holdings down 3 per cent on NSE.