Bajaj Finance Ltd on Monday replaced State Bank of India to become India's tenth most-valued firm by market capitalisation on the BSE.

According to the BSE, Bajaj Finance's market capitalization stood at 2.87 trillion, with its shares trading at 4,773.85 on the BSE. The finance company's shares have risen nearly 12% so far this year.

State Bank of India has a market cap of 2.81 trillion. Currently, Reliance Industries Ltd is the country’s most valued company with a market cap of 9.48 trillion, followed by Tata Consultancy Services Ltd ( 8.26 trillion) and HDFC Bank Ltd ( 6.73 trillion).

Hindustan Unilever Ltd is number four ( 4.95 trillion), followed by HDFC Ltd ( 4.12 trillion), Infosys Ltd ( 3.36 trillion), ICICI Bank Ltd ( 3.50 trillion), Kotak Mahindra Bank Ltd ( 3.23 trillion), and Bharti Airtel Ltd ( 3.07 trillion).

Despite the slowdown in consumer spending, Bajaj Finance has reported strong earnings consistently and analysts said this is a clear indication of the company's resilient business model.

Analysts gave a thumbs-up to the finance company’s portfolio granularity strategy across products and geographic locations and its capacity to absorb higher provisions. They believe the firm will continue on its high double-digit growth trajectory.

"Overall, we remain optimistic about BFL’s growth prospects on both topline and earnings front supported by a wide and strong customer franchise (40.38 mn customer base; 65-70% of new loans generated from existing customers), unique market positioning in India with an expanding retail franchise and distribution reach, a well capitalized balance sheet, and sound ROE profile (>20%)" said KR Choksey in a report.

SBI stock has fallen nearly 4% in the last two sessions on concerns over its asset quality after the Supreme Court rejected Vodafone Idea and Bharti Airtel's plea seeking to negotiate payment schedule in AGR case. SBI has around 11,200 crore exposure to Vodafone Idea. So far this year, the stock has declined nearly 5.3%.

Investor sentiment was also hit after recent December quarter earnings of SBI showed a sharp rise in slippages. The lender reported slippages of 16,525 crore versus 8,800 crore in the second quarter led by non-performing asset recognition of housing finance account. Corporate slippage came in higher at 9,467 crore against 3,239 crore quarter on quarter.

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