Bajaj Finance Limited

‘What if the borrower does not pay back?’ Well I think you are questioning the entire banking industry, not just BFL. Some of the borrowers do not pay back. That is truth. As long as the non repaying borrowers are a tiny fraction, then it is Ok. You don’t have to wonder about the defaults, banks and NBFCs are required to declare their non-performing loans and also provision for them regularly. BFL has net NPAs of 0.38% (Net NPA = Gross NPA -Provisions). I think this post will help you - How to analyze NBFC companies?

5 Likes