Elevated credit costs from B2C businesses; NIM contracts QoQ

30 Jan 2024
5 Min read 
  • Bajaj Finance reported 3QFY24 PAT growth of 22% YoY, in line with expectations.
  •  Net Interest Margin (NIM) contracted QoQ, and elevated credit costs were observed in B2C businesses.
  •  AUM growth was strong at 35% YoY, driven by new customer acquisitions and growth in various loan segments.
  •  The company expects to offset NIM compression with lower operating cost ratios.
  •  Changes in senior management portfolios were announced, including the re-designation of Anup Saha as Deputy MD.
  •  The RBI banned two products, and Bajaj Finance is working on addressing the deficiencies highlighted by the RBI.
  •  The company plans to dominate all digital platforms and increase business volumes from these platforms.
  •  The stock is rated as a "Buy" with a target price of INR 8,500.
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