CLSA backs Bajaj Finance, SBI as top lending picks on growth, valuation comfort

Bajaj Finance

23/09/2025 07:16

** Investors in Indian markets should focus on a mix of sustainable growth outperformers and value stocks during current low-growth phase, says CLSA

** Brokerage identifies Bajaj Finance BJFN.NS and State Bank of India SBI.NS as top large-cap picks among lenders

** Forecasts BJFN to post mid-20% loan growth in FY25, alongside improving margins and lower credit costs

** Despite slower overall credit growth, CLSA calls BJFN a structural growth story, projecting around 20% profit growth through FY25–27, mirroring earlier years

** Also terms SBI "a truly valuable" stock due to consistent outperformance over peers, valuation comfort, sustainable loan growth and improving asset quality

** Predicts SBI could reach $100 billion market cap within a year and Bajaj Finance in 2-3 years

** BJFN up ~2% on Tues while SBI gains 0.6% vs 0.4% drop in benchmark Nifty 50 .NSEI

** BJFN up 48% in 2025 and SBI gains 8%, outperforming NSEI's 6.2% rise YTD

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))