This Indian Lender Is a Rare Bright Spot in Shadow Banking World

  • Bajaj Finance is top performer on India’s Sensex this year
  • Loan diversification, asset-light operations drive growth
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Bajaj Finance Ltd. has been one of the top stock performers in India this year, defying drops in peers amid a crisis of bad loans and defaults that has hobbled India’s nonbank financial companies.

The shadow bank’s shares have surged 25% while some rivals have plunged as much as 89% since August 2018. That was the month IL&FS Financial Services missed a payment on short-term borrowings, triggering a cash crunch and a crisis of confidence in its fellow lenders.