Bajaj Finance: Investors should await clarity on moratorium\, asset quality

Bajaj Finance: Investors should await clarity on moratorium, asset quality

Moratorium book is down to 15.5% in Q1 from 27% in April, but some analysts are still cautious on asset quality

Topics
Bajaj Finance | assets under management

Shreepad S Aute  |  Mumbai 

While business growth is an important metric, the Street’s reaction to Bajaj Finance’s June 2020 quarter (Q1) update, announced on Monday post market hours, indicates that investors are more concerned about the lenders’ asset quality in the Covid-19 era. Despite muted business performance in Q1, shares of Bajaj Finance gained about 8 per cent on Tuesday to emerge as the top Sensex gainer.

The gains are largely due to a sharp reduction in the moratorium book, which has direct impact on asset quality and earnings. According to the Q1 update, Bajaj Finance’s assets ...
First Published: Tue, July 07 2020. 19:10 IST