There is no debate at all, at least not for me. As i mentioned these are my thoughts on way of doing business. That’s how I invest and i am content with it. Not interested to debate with you or anyone but happy to hear thoughts. Good to know about your DnD but guess these guys find loopholes. Btw I do business with many other BFSI as well but not seen such people involved with other renowned corporates.
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invested in Bajaj Fin and I second the complaint about being hassled by their sales reps. They sent me an EMI card and deducted Rs 177 handling charges because I did not avail of any loan this year. this was not told to me in the past.
very shady practices by the company
shiv kumar
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I am an investor Bajaj Finance (through Maharashtra Scooters) and also their customer. I have also felt uncomfortable by the way they conduct their business. I understand the point about DND and also the problem of pesky calls is not limited to Bajaj Finance but calling people 7-8 times a day everyday is a bit too much. Also I have come across a lot of complaints about BF forcing people to take their products (eg adding a digital EMI card to a loan account, miselling insurance policies along with housing loans etc). Again banks do this all the time and deduct charges from your account without you noticing it it is just that Bajaj Finance is at a different level. I also heard people talk about how difficult it is to foreclose a loan with BF.I am not sure whether these things will have an impact on the business either medium term or long term but it does leave bad taste in the mouth
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I’m not a BFL customer, though a investor. With the kind of growth they are seeing, I am sure they would have very aggressive targets for the sales team. Though, management may not be directly intending, as one goes down the lower levels in the organization hierarchy, employees do not have any option but to somehow try to meet those targets.
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Posting without comment 
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IMHO, sounds similar to Wells Fargo Account Fraud scandal that happened in 2016. Here is the link. To be clear - not saying that there is a big account opening fraud happening at BF, but connecting the dots due to the way greed and incentives lead to such human behavior in lending businesses.
Wells Fargo clients began to notice the fraud after being charged unanticipated fees and receiving unexpected credit or debit cards or lines of credit. Initial reports blamed individual Wells Fargo branch workers and managers for the problem, as well as sales incentives associated with selling multiple “solutions” or financial products. This blame was later shifted to a top-down pressure from higher-level management to open as many accounts as possible through cross-selling.
Hope this behavior is limited to branch workers and branch mangers level and not flowing from the top management.
Would Senior Executives and Promoters be happy about this behavior? I’d guess, NO. Is this issue fixable, I’d guess, YES. As this issue was fixed at Wells quite well.
Just wanted to share my 2 cents.
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I also have experienced/experiencing same kind of constant calls on mu Mobile even I have DnD activated.
How this is working, Bajaj finance has outsourced sales to many low wages companies and these ppls even don’t have communication skills to talk to educated ppls, and they Just start, sir I have offer for you for overdraft just at 15% ROI and when I say I don’t need a loan, he/she innocently says sir you don’t have to pay any interest if you dont’ use this amount (but take this loan).
I am a stockholders in a Bajaj finance since last 5 years and after seeing they have to resort to Grocery financing and constant calls for overdraft loan, I feel Bajaj finance has peaked and planning to “offload” my holding let me look for any other less risky bet now, anyway 11 time P?B does not look cheap…
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To my surprise I got this recommendation https://www.youtube.com/watch?v=40QnAHkoqn8 today on Youtube , I don’t remember last time when I googled about Bajaj Fin still got this. I am not a customer of Bajaj Fin.
I do get lot of calls from HDFC Bank or ICICI Bank almost every alternate day,from past 3-4 months. The calls have become more frequent.
I searched on youtube for similar videos , almost all videos are uploaded in last one year. What has really changed in Bajaj Fin last year ?
Now HDFC , ICICI or SBI giving loans on their debit card to consumers to buy things , this where bajaj fin had the edge IMO. Serving people who neither had credit cards nor credit history.
I know this not a consumer forum , please take out my post if its not adding any value to thread.
Disc: Invested.
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read about lot of bad customer experiences with Bajaj finance and it isnt a very good feeling as a customer and they should strive to improve .
But from purely investment perspective,
However my post is with respect to demand slowdown due to such issues , i believe HDFC bank has also customer issues but hasnt seen any fall in its top position . I believe the reason is money has inelastic demand and the another reason is that they facilitatre speedier loans as compared to others . So that may not halt its growth .
Risk management seems to be the core factor to monitor here plus the behavioral incentives in lending business as @rupaniamit so rightly pointed out
I am more concerned about the issues of Karvy and earlier IIFL issues . While the amount isnt material , i am pondering about the policy in general . I appreciate the way it has managed itself to the place where it is and a greater proportion of retail loan book and is one of my favorite stock . However we know that they have been speaking about risk management and are great at detecting issues , and hence i fail to understand that despite issues , why do they continue to focus on corporate inspite of converting corporate book to even more retail .
Disc - Invested
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Continuing on the same line, my brother had availed a few loans from bajaj finance. Even after all loans are closed he told me he still gets at least 4 calls almost every day from bajaj. Dnd does not work on them because they call from different mobile numbers and not landline numbers.
Another mischief that bajaj did with him was that every month they were charging some amount for cibil score check. He had to fight his way to get this reversed.
He is in merchant navy so maybe they thought that the person wont be regularly checking the statements. Such acts are inexcusable from customer service point.
Now there are 2 paths to the story, as bajaj gets a bad name with the prime customers circles for spamming, cheating etc., those who can afford the purchase without a loan will completely avoid it. Those who can afford it should anyways be getting better deals with reward point from their CC.
The 2nd set of people who need the loan for the purchase have no choice but to deal with bajaj. It is obvious that the 2nd set of people are vastly more than the 1st set and thus growth should continue.
Their upcoming competition from hdb, mahindra, piramal and others can get an edge if they dont create a name for themselves for cheating.
It is a possibility that these are isolated cases, unfortunately in financial services industry people rarely goto consumer courts for a few hundred wrong debits from the account.
At least in banking you have the ombudsman whom you can complain to, i am not aware whether same applies for nbfcs.
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The unlisted entity has a PAT of 75 crores . So what would the valuation and hence the percentage of recovery for Bajaj finance?
MY two cents on BAFL
Some Explanation and points to back up the above.
Disclosure: My views could be biased and i have every right to be Wrong.
Invested : Largest position in my Portfolio
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Good Customer seldom give feedback. Only customers with bad experience give -ve feedback. Such feed backs you will get from every lender. A satisfied customer never walks into the branch and they are the silent ones. I am sure these are isolated cases.
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Recently noticed that Bajfin offers EMIs on hotels and flight bookings done through Goibibo and MMT. This is excellent as it allows a large number of Indians to divide the cost of their annual vacations. Also, seeing how more people of the new generation live on experiences, the travel industry has been seeing some structural shifts.
Definitely a good industry to have exposure to!
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Focusing on growth always and ignoring the risk in this type of lending Business could harm in Long Run.