Bajaj Finance flags stress in unsecured MSME loans

India's largest retail non-bank finance company posted a consolidated profit after tax of ₹4,765 crore

- Anshika Kayastha

Even as it reported a steady April-June quarter in terms of growth and profitability, Bajaj Finance flagged "unexpected" stress in its unsecured micro, small, and medium enterprises (MSME) loan portfolio amid signs of slowing incremental disbursements and new customer additions. The lender said it had pruned most riskier segments, except MSME that was a "work in progress".

The country's largest retail non-banking finance company Thursday posted a consolidated profit after tax at ₹4,765 crore, up 22% from a year ago; consolidated net interest income was also 22% higher at ₹10,227 crore.

Newly returned to the helm of the company, vice chairman and managing director Rajeev Jain said over-leverage of customers across product segments remains a pain point and that the company was taking several actions across product lines to reduce the contribution of customers with multiple loans.