Bharat Financial Inclusion extends losses

Bharat Financial Inclusion fell 2.93% to Rs 798.15 at 15:01 IST on BSE, with the stock extending heavy losses registered during the previous trading session triggered by the arrest of the company's President S Dilli Raj by the Enforcement Directorate

Meanwhile, the S&P BSE Sensex was down 168.80 points, or 0.60%, to 27,812.91.

On BSE, so far 6.32 lakh shares were traded in the counter, compared with an average daily volume of 2.19 lakh shares in the past one quarter. The stock hit a high of Rs 849.75 and a low of Rs 778.15 so far during the day. The stock hit a 52-week high of Rs 938.75 on 29 July 2016. The stock hit a 52-week low of Rs 369.45 on 18 September 2015. The stock had outperformed the market over the past one month till 2 August 2016, rising 11.89% compared with 3.08% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 33.40% as against Sensex's 10% rise.

The large-cap company has an equity capital of Rs 127.59 crore. Face value per share is Rs 10.

The Bharat Financial Inclusion stock slumped 9.73% to settle at Rs 822.20 yesterday, 2 August 2016, in reaction to the company's announcement that its President S Dilli Raj was arrested by the Enforcement Directorate (ED) in connection to a complaint filed by IDBI Bank against First Leasing Company of India. The stock has fallen 12.37% in two sessions from its close of Rs 910.80 on 1 August 2016.

Bharat Financial Inclusion has clarified that the investigation pertains to Dilli Raj's previous tenure with First Leasing Company of India as First Leasing's employee and that the investigation does not in any way relate to the company. Dilli Raj had earlier issued a personal statement on 19 October 2015 stating that all loans taken during his tenure in First Leasing were repaid by First Leasing and that the complaint filed by IDBI Bank relates to loans sanctioned after he ceased to be an employee of First Leasing. Dilli Raj also had clarified that his role was confined to treasury operations and he did not authenticate or sign any financial statements of First Leasing.

Bharat Financial Inclusion's net profit surged 285.7% to Rs 235.91 crore on 46.5% increase in total income to Rs 414.12 crore in Q1 June 2016 over Q1 June 2015.

Bharat Financial Inclusion formerly SKS Microfinance is among the largest microfinance companies in India.

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