Bajaj Finance: Conservatism On Incremental Lending Stays, Says Prabhudas Lilladher
A man counts Indian rupee banknotes in Varanasi, Uttar Pradesh, India. (Photographer Dhiraj Singh/Bloomberg)

Bajaj Finance: Conservatism On Incremental Lending Stays, Says Prabhudas Lilladher

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.

Prabhudas Lilladher Report

Bajaj Finance Ltd.’s Q3 FY21 business update indicates strong customer augmentation but continued caution on incremental lending.

5% asset under management growth over Q2-Q3 FY21, slowing incremental loans trend QoQ in Q3 FY21 and channel checks suggesting a reduction in loan-to-values with stringent know-your-customer checks indicate company’s precedence for credit quality over aggressive book expansion.

While channel checks suggest improving consumer financing, the company’s cognizance on delinquency control until clarity emerging on credit bureau stands credible.

Against this backdrop and strong price momentum, we believe Bajaj Finance is entering into a priced-to-perfection zone.

Click on the attachment to read the full report:

Prabhudas Lilladher Bajaj Finance Company Update.pdf

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