UBS upgrades Bajaj Finance shares, LT Finance as it sees NBFCs better placed than banks. Here’s why
Bajaj Finance is in focus in a monetary policy development.
23 Sept 2026 · Economic Times Markets, ET Stocks
UBS upgraded Bajaj Finance to Neutral and L&T Finance to Buy, citing improving asset quality and a revival in unsecured lending. The brokerage sees scope for re-rating as personal loan growth accelerates, liquidity remains supportive and funding conditions stay favourable. It also expects improving return on assets across select NBFCs.
The analysis
Against that, the stock is +0.2% on the day at ₹965.15, and has returned -7.3% over three months. It sits 17% below its 52-week high. The financial services sector has moved -8.6% over the same period, so Bajaj Finance is running 1.3 points ahead of its peers.
For Bajaj Finance, the question is how much of this is already reflected in the price and how much re-rates the financial services peer set alongside it.
Why it matters
- Rate decisions ripple straight into banks, NBFCs and every rate-sensitive sector — from real estate to autos.
Market context
- The company directly in focus is BAJFINANCE.
- Sector exposure: Financial Services, Banks.
- The immediate tone of coverage reads positive.
In this story
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