Archive · 24 Jul 2025
Bajaj Finance Sees Unexpected Stress in MSME Loans
Bajaj Finance, a big lender, is seeing problems with loans to small businesses (MSMEs).
While profits are up, some MSME borrowers are struggling to repay their loans unexpectedly.
This is due to factors like over-borrowing and a slowdown in some industries.
The company is helping by offering more time to pay and adjusting lending rules.
However, they expect slower growth in certain loan segments for the coming year.
The company's focusing on helping customers restructure their loans to help them repay on time.
Bajaj Finance reported unexpected stress in its unsecured MSME loan portfolio.
Consolidated profit after tax rose 22% to ₹4,765 crore.
Loan loss and provisions increased by 26% year-on-year.
Early-stage delinquencies rose in two- and three-wheeler loans and business and professional loans.
Restructuring options are being offered to assist struggling MSME borrowers.
- Who
- Bajaj Finance
- What
- Bajaj Finance flagged unexpected stress in unsecured MSME loans.
- When
- The stress was reported in the April-June quarter.
- Where
- India
- Why
- Due to over-leverage of customers and industry slowdown.
Bajaj Finance's View
N/A
MSME Loan Stress
Bajaj Finance's View
The company is surprised by the sudden stress and is actively managing it.
N/A
The company will offer restructuring options and adjust lending standards to manage the issues.
- Profit After Tax
- ₹4,765 crore
- Net Interest Income
- ₹10,227 crore
- Loan Loss and Provisions Increase
- 26% YoY
- Gross NPA Ratio
- 1.03%
- Net NPA Ratio
- 0.50%
- MSME Book Slippage
- 1.76%
- Two- and Three-Wheeler Loan Slippage
- 6.38%