Branch2 Intelligence
Bajaj Finance 'bulls' expects stock to benefit from this RBI move, projects 19% upside
Key takeaway
RBI's FCNR (B) norms boost deposit mobilization for NBFCs like Bajaj Finance.
- Step 1RBI eases FCNR (B) norms for NBFCs, enabling foreign currency deposit mobilization.
- Step 2Bajaj Finance attracts low-cost FCNR deposits, reducing its overall funding cost.
- Step 3Lower funding cost improves net interest margin and lending competitiveness.
- Step 4Sustained margin expansion supports higher return on equity and valuation re-rating.
Source: CNBC TV18 (Markets)
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