Bajaj Finance sees FDI in retail boosting consumer loans.

Bajaj Finance Ltd expects foreign direct investment in retail to provide a boost to its business of lending for consumer durables according to chairman Sanjiv Bajaj, MD, Bajaj Finserv. The company, which is focused on consumer lending, is specialising in the area of consumer durables and has seen a 33% growth on amount deployed in consumer loans in the first quarter.

Speaking to ToI, Bajaj said FDI in retail would bring in the much required efficiency in supply chain and expand the market. "We have already seen this happen with the existing large format stores, they have only expanded the market for retail" he said. He added that large stores also provide a boost to lending business by aggregating customers.

For the quarter ended September 30, Bajaj Finance posted a 48% rise in net profit which touched Rs 129 crore from Rs 87 crore a year ago. The company's net interest income rose 36% to Rs 442 crore.