After a dream run for over a decade, India’s largest non-bank consumer lender and its investors are coming to terms with a new normal of low growth and asset quality erosion.
Bajaj Finance knows that it cannot do much about low growth because quarantined Indians are unable to spend beyond essentials.
Analysts already expected growth to suffer in FY21, especially after the lender said last month that new loans grew a mere 3% as against high double digit growth in the previous many quarters.
Indeed, the share price has eroded a whopping 21% since the lockdown to curb covid-19 was announced on 24 March, reflecting the growth impact.