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Motilal Oswal Report
Bajaj Finance Ltd. reported healthy customer acquisition with 2.6 million new customers added during the quarter. Absolute customer acquisition run-rate surpassing pre-Covid-19 levels while the quarterly run-rate growth of the total customer franchise was broadly at the same levels as the last four quarters. Total customer franchise increased to 55.4 million (up 4.9% QoQ / 19.6% YoY).
New loans booked were up 17% QoQ at 7.4 million (versus 6.04 million YoY) and were just 4% below the number of new loans book in the festive quarter pre-Covid. The share of new customer loans to overall loan originations remained largely consistent at ~35% (~37% in previous quarter). This ratio had declined to ~30% in Q1 FY21 during the peak of the first Covid-19 wave.
While this suggests that Bajaj Finance has been gaining a larger share of its customer wallet, it also indicates lower risk appetite to lend to newer customers.
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