Home / Markets / Stock Markets /  Bajaj Finance sees healthy loan growth in Q2, Jefferies sees upside on stock

While sharing its Q2 FY23 business update, Bajaj Finance said that consolidated net liquidity surplus stood at approximately 9,300 crore as of 30 September 2022 and the company’s liquidity position remains strong.

“Total customer franchise grew by 19% YoY to 63 m, although new loan bookings were down 8% QoQ. On funding side, deposits grew by 37% YoY/ 16% QoQ and BAF has reduced surplus liquidity position by 19% QoQ that can support net interest margins (NIMs). Capital consumption is higher at 110 bps during 2Q, but total CAR is still high at 25%," said Jefferies while recommending Hold rating on Bajaj Finance shares on healthy loan growth with a target price of 8,000 apiece.

New loans booked during Q2 FY23 were 6.8 MM as compared to 6.3 MM in Q2 FY22. Assets under management (AUM) grew by 31% to approximately 218,350 crore as of 30 September 2022 as compared to 166,937 crore as of 30 September 2021. AUM in Q2 FY23 grew by approximately 14,350 crore.

The company continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 25.1% as of 30 September 2022. Its deposit book stood at approximately 39,400 crore as of 30 September 2022 as compared to 28,720 crore as of 30 September 2021, a YoY growth of 37%.

Bajaj Finance Limited is a deposit-taking Non-Banking Financial Company registered with the RBI. The financial stock is up nearly 3% in 2022 (YTD) so far.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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