Citi has maintained its neutral rating on Bajaj Finance with a target price of ₹983 per share, following the company’s steady Q2 operational update. The brokerage noted that the lender reported sustained assets under management (AUM) growth of 23.6% year-on-year and 4.7% quarter-on-quarter. However, the number of new loans booked saw a sequential moderation to 12.2 million due to seasonality.
Citi said it expects net interest margins (NIMs) to remain stable in the near term, supported by disciplined pricing and a well-balanced lending mix. The brokerage also highlighted that the restructuring of SME accounts will continue, which could lead to a mild increase in gross Stage 3 (GS-3) assets. Fee income is projected to stay within the guided range of 13–15%, reflecting consistent non-interest revenue generation.
While Citi remains cautious on the stock’s near-term upside potential, it acknowledged Bajaj Finance’s continued AUM growth and prudent asset quality management. The neutral stance reflects a balanced risk-reward outlook amid competitive intensity and funding cost pressures.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
