BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Bajaj Finance Ltd. reported healthy customer acquisition with 2.6 million new customers added during the quarter. Absolute customer acquisition run-rate surpassing pre-Covid-19 levels while the quarterly run-rate growth of the total customer franchise was broadly at the same levels as the last four quarters. Total customer franchise increased to 55.4 million (up 4.9% QoQ / 19.6% YoY).
New loans booked were up 17% QoQ at 7.4 million (versus 6.04 million YoY) and were just 4% below the number of new loans book in the festive quarter pre-Covid. The share of new customer loans to overall loan originations remained largely consistent at ~35% (~37% in previous quarter). This ratio had declined to ~30% in Q1 FY21 during the peak of the first Covid-19 wave.
While this suggests that Bajaj Finance has been gaining a larger share of its customer wallet, it also indicates lower risk appetite to lend to newer customers.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.