Bharat Financial Inclusion had closed at Rs.818.35 on Monday and today, it opened lower at Rs.810, going down to an intra day low at Rs.786.65.

The market is not happy with the farm loan waiver declared by UP CM, Yogi Adityanath. This was a part of the elections and the BJP had to keep it, NPAs or no. Loans upto Rs.1 lakh are being waived off and this is going to come at a cost of Rs.36,000 crore.

Mirco finance companies and NBFCs are going to face the brunt when it comes to repayments because most of their loans would be below Rs.1 lakh. This sets off a wrong precedent and discourages honest farmers from repaying as they feel why they should repay when others are getting scot free.

For Bharat Financial Inclusion, which has just got over demonetization impact, this will prove to be a double whammy.