Bajaj Finance’s collections in two-wheeler financing hit by demonetisation

Mumbai, Dec 13 (IANS) Bajaj Finance on Tuesday said that the collection of installments of its two-wheeler finance business was hit by demonetisation of high value currencies.

“The two-wheeler finance business which constitutes 8 percent of the balance sheet has seen some impact of demonetisation. Two wheeler financing is mostly rural-based business. Due to demonetisation, rural market is running on a lag of 15-20 days. There was an impact on collection (of instalments),” said company MD Rajeev Jain.

In the asset-based businesses which are instalments-led businesses, there was growth in the most of the businesses and de-growth in some others, he said at an interview with BTVi.

Jain also said loan enquiries which dropped just after the announcement of demonetisation recovered later. “Loan enquiries remained flat in the last thirty days after the announcement of demonetisation,” he said.

“Post Diwali, loan applications and enquires in our consumer business, usually drop. After 30 days from Diwali including 23 days after the demonetisation, we have seen an overall growth of 29 percent in the consumer businesses,” he added.