Bajaj Finance: One quarter’s slight disappointment in slippages should not be looked at as a dampener: Gaurang Shah

economictimes.indiatimes.com:

Gaurang Shah, Senior VP, Geojit Financial Services, says “if India is thinking about becoming a bigger-trillion dollar economy, credit demand is going to be very strong. Equally strong will be the asset quality if all goes well. There is enough room for large players like Bajaj Finance to exist together. It is the Small, medium-sized, unorganized players who will have to rethink their strategy.”

How are the Bajaj Finance numbers looking like to you?
PAT is in line. There is a marginal uptick. Nothing really serious as far as the gross NPAs are concerned. I think there has been a little bit of uptick in provisioning as well. In terms of NIIs, it is better than what we had estimated. I would definitely be looking forward to the management commentary in terms of business outlook and the fundraising programme that they have done.

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Since we are talking about Bajaj Finance, let me give a disclosure. We have a positive coverage on Bajaj Finance on the fundamental side from a long-term point of view. And not only Bajaj Finance, but a lot of other NBFCs and banks have come to the market to garner funds which kind of indicates that they expect the credit demand to be very strong.
Business outlook and slippages is something that I would require a little bit of clarity as far as the management commentary is concerned.

I wanted to have a sense on asset quality because gross NPA has seen a jump of 0.8% last quarter to 0.91% this time around because the company is more into unsecured