Bajaj Finance's Gold Loan Book Doubles, Then It Pulls The Plug On A Scheme
Bajaj Finance is in focus in a banking & credit development.
· NDTV Profit
Bajaj Finance added 321 gold-loan branches in the September quarter, taking its network to 2,022. It has stopped short-tenor schemes after customers missed interest payments or loan renewals, pushing up Stage 2 assets.
The analysis
Against that, the stock is -2.5% on the day at ₹957.35, and has returned -9.4% over three months. It sits 17% below its 52-week high. The financial services sector has moved -9.2% over the same period, so Bajaj Finance is running 0.2 points behind 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
- Credit growth and asset quality are the pulse of the financial sector, which is the largest weight in Indian indices.
Market context
- The company directly in focus is BAJFINANCE.
- Sector exposure: Financial Services.
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