Bajaj Finance Shares Bounce Back by 6% on Strong Loan Growth
Bajaj Finance, a non-banking finance company (NBFC), said it booked 7.3 million new loans during quarter ended June 2019 against 5.6 million in same period last year.
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Bajaj Finance Ltd shares gained over 6% in intraday trade on Tuesday, i.e. July 9, after the country’s largest consumer finance company reported loan growth in the last 11 quarters.
At 1.43 pm, Bajaj Finance shares were trading at Rs 3,602.15, up 5.5%, on BSE. The stock had fallen over 8% in the previous trading session.
Bajaj Finance, a non-banking finance company (NBFC), said it booked 7.3 million new loans during quarter ended June 2019 against 5.6 million in same period last year. The company added it acquired 2.5 million new customers in Q1.
Bajaj Finance further said its assets under management (AUM) stood at approximately Rs 1,29,000 crore as of June 2019, increasing significantly by 41.3% compared with Rs 91,287 crore as of June 2018 and 11.3% compared with Rs 1,15,888 crore at the end of March 2019.
Customer franchise as of June 2019 stood at approximately 36.9 million, which was much higher compared to 28.3 million in same period last year.
Shares of Bajaj Finserv Ltd also jumped as much as 4.5% in intraday trade on Tuesday after falling 10% in the previous session. Sanjiv
Bajaj, managing director at Bajaj Finserv, had earlier in the day told CNBC-TV18 that the company has seen slower growth in the first quarter of FY20 as the economy is slowing down.
“Sales of television units reach a peak level during big events, but it is very unusual this year that, despite the ICC Cricket World Cup, TV sales were lower than last year... so that is a signal,” said Bajaj.
Bajaj added: “The economy is slowing down any way whether it is HDFC numbers or whether our own numbers... consumer demand is low. This has nothing to do with the NBFCs’ lack of ability to lend in the last couple of quarters. That is probably further adding to it, but the slowdown is quite apparent.”
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