MSME stress may persist
MSME GNPA increased significantly; management cut volumes by 25% and expects stress to abate only by March-June 2026.
BAJFINANCE / Q2-FY26 / risks
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Bajaj Finance · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
high
Captive two-wheeler portfolio drag
Captive two-wheeler book (1.5% of AUM) contributes 9% of loan losses; run-down may take time to fully benefit credit costs.
Margin compression from passing on rate benefits
Management intends to pass on cost-of-fund improvements to customers, keeping NIM flat, limiting upside to margins.
Sector-wide MSME stress not flagged by peers
Analyst noted that other lenders are not flagging similar MSME issues, raising concern that Bajaj Finance's experience may be idiosyncratic or sector-wide.