Shriram City Union Finance fell 1.20% to Rs 2,281.65 at 11:21 IST on BSE after the Reserve Bank of India imposed a monetary penalty of Rs 20 lakh on the company for violating fair practices guidelines on loans.
Meanwhile, the S&P BSE Sensex was down 166.25 points, or 0.56% to 29,622.10.
On the BSE, 114 shares were traded in the counter so far, compared with average daily volumes of 12,032 shares in the past one quarter. The stock had hit a high of Rs 2,305.50 and a low of Rs 2,260.85 so far during the day.
The stock hit a record high of Rs 2,650 on 30 October 2016. The stock hit a 52-week low of Rs 1,501 on 12 April 2016.
The stock had outperformed the market over the past one month till 11 April 2017, rising 15.10% compared with 2.91% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 25.22% as against Sensex's 9.76% rise.
The large-cap company has equity capital of Rs 65.94 crore. Face value per share is Rs 10.
The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 20 lakh on Shriram City Union Finance for violation of directions/orders issued by Reserve Bank of India from time to time. RBI made the announcement after market hours yesterday, 11 April 2017.
A scrutiny of sample loan accounts of the company was conducted in November 2015. It was observed that the company has violated various provisions of the Fair Practices Code guidelines issued by RBI under Section 45 L of the RBI Act, 1934. On account of various contraventions to RBI directions as observed during the scrutiny, the company was issued a Show Cause Notice (SCN) on 1 August 2016 for imposition of penalty. The company's response to the SCN was not found to be satisfactory. The company was also accorded a personal hearing by RBI on 14 February 2017. After considering the facts of the case and the company's reply, as also, personal submissions made during the hearing, RBI came to the conclusion that the violations as observed during scrutiny were substantiated which warranted imposition of monetary penalty on the company. Accordingly, a penalty of Rs 20 lakh has been imposed on the company.
Shriram City Union Finance's net profit fell 9.5% to Rs 157.74 crore on 15.5% rise in operating income to Rs 1156.33 crore in Q3 December 2016 over Q3 December 2015.
Shriram City Union Finance is India's premier financial services company specializing in retail finance. It has a comprehensive range of offerings comprising finance for two wheelers and three wheelers, four wheeler finance (both new and pre-owned passenger and commercial vehicles), personal loans, small business loans, and loan against gold.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
