Bajaj Finance Share Price Rises Near Day's High After Reporting 27% Surge In Loan Growth

Bajaj Finance Ltd. share price rose to near day's high after the company said that it has recorded 27% surge in festive loan volume.

During the festive season, Bajaj Finance has disbursed a record number of consumer loans, which is higher by 27% in volume, and 29% in value as compared to the corresponding period of the previous year, the exchange filing said.

Bajaj Finance disbursed approximately 63 lakh loans from Sept 22 to Oct 26.

First-time borrowers are now 52% of the new-to-Bajaj Finance customers' pie, which indicated that financial inclusion has also inceased, the non-banking financial company said in an exchange filing. During the same period, Bajaj Finance added 23 lakh new customers, of which 52% were new-to-credit, thus significantly advancing financial inclusion.

Government's step to reduce GST rates and personal income tax helped to increase loans for consumer goods. Lower GST rate for television and air conditioners has helped consumers reduce their average ticket size of loans by 6% while they upgraded to higher-end products, Bajaj Finance said in the exchange filing.

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Bajaj Finance share price rose 1.66% to Rs 1,060 apiece. It was trading 1.29% higher at Rs 1,056 apiece as of 1:29 p.m. compared to 0.36% decline in the NSE Nifty 50 index.

The stock rose 54.43% in 12 months, and 55.1% on year to date basis. Total traded volume on National Stock Exchange so far in the day stood at 2.39 times its 30-day average. The relative strength index was at 56.60.

Out of 37 analysts tracking the company, 20 maintain a 'buy' rating, 12 recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 22.7%.