Mumbai, Feb 3: The Reserve Bank of India (RBI) on February 2 said it has imposed Rs 5 lakh monetary penalty on Bajaj Housing Finance for certain rule violations.

The RBI said the action was taken following inspections revealed that the company did not take prior written permission of RBI for change in management resulting in change in more than 30 percent of the directors, excluding independent directors.

Earlier, the central bank had issued a notice to the company advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions.

After considering the company’s reply to the notice, the central bank concluded that the charge of non-compliance with the aforesaid statutory directions was substantiated and warranted the imposition of a monetary penalty on the company.

Bajaj Housing Finance’s net profit rose 31 percent on-year to Rs 437 crore in the October-December quarter. In a similar period last year, the housing financier reported a net profit of Rs 334 crore.