India's Bajaj Finance loan growth may moderate on RBI 'nudges' - Kotak

L&T Finance

27/12/2023 06:20

** Kotak Institutional Equities cuts Bajaj Finance Ltd's
 BJFN.NS  FY24 loan growth estimate to 29%, from 31% earlier
    ** Report on RBI's shorter-than-expected extension to
BJFN-RBL Bank  RATB.NS  credit card partnership, BJFN's serious
deficiencies on compliance a "third nudge" that would slow loan
growth - Kotak analysts
    ** RBI had in mid-November directed BJFN to stop issuing
loans under two products; a day later RBI tightened sector-wide
rules for unsecured lending
    ** BJFN's unsecured personal loans form 37% of its assets
under management – highest among listed peers - Kotak
    ** Adds, only L&T Finance Holdings  LTFH.NS  comes close, at
36%, while rest range from 7% to 22%
    ** Bajaj Finance currently up 1.2% at 7,249 rupees – lower
than Kotak's price target of 7,400 rupees
    ** Kotak has a "retain" rating on BJFN


 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))