It is being said by some that grant of banking license will raise share prices. Maybe. but the earnings will not rise immediately. AXIS band and ICICI are quoting at a trailing PE of abt 12-13, I cannot expect Bajaj finance to quote at a higher PE.
i feel it will be a negative in the short term. Granting of banking license will meanthat Bajaj fin will have to comply with the CRR requirement and will have park 4 % of funds with RBI ( I believe CRR is presently 4 %). Also the company will have to incur capex in setting up of new branches and other general marketing expenses.
The advantage of owning a bank is low cost of funds. However, opening a branch does not mean customers will rush to open an account. Also the company will have to compete with well established private banks - hdfc , icici, axis, yes, kotak, indus ind and also with other new banks.
As per RBI guideline , one out of every 4 branch has to be in rural areas which will affect the rate of growth as well.
Over longer term it should be a positive provided the company is able to handle the new business well. I consider it as a negative for short - medium term.