Bajaj Finance sputters on note ban impact

Spike in loan provisioning, moderation in consumer durables loan growth may weigh on stock

Bajaj Finance is often considered a benchmark in the non-banking financial services space for its asset quality. But, of late, it is becoming tough for Bajaj Finance to keep pace with expectations. This is why, despite March quarter (Q4) results being in line with analysts’ estimates, the rise in gross non-performing assets (NPA) ratio disappointed investors, and weighed on Bajaj Finance’s stock price, which fell 1.6 per cent on Wednesday.

Loan loss provisioning in Q4 at Rs 290 crore is the highest in the past five quarters and signals an 86 per cent jump year-on-year. However, provisions for the quarter