Bajaj Finance bracing for tougher times, to raise share of deposits to 25%

In the wake of money becoming expensive, the lender turns to depositors for funds

The eye-catching takeaway from Bajaj Finance’s September quarter (Q2) results is the spike deposits. At Rs 110 billion, deposits surged by 41 per cent year-on-year in Q2, taking its share in overall liabilities to 15 per cent from 10 per cent in year-ago period. “By 2020, we plan to increase the share of deposits to 20 – 25 per cent,” says Rajeev Jain, managing director, Bajaj Finance.

While a top-rated entity like Bajaj Finance may not be a victim of liquidity crunch, it is unlikely to remain unhurt in an increasing interest rate scenario. Deposits are typically cheaper