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Bajaj Fin: Worst case scenarios play out as stress builds across portfolios

Bajaj Finance has indicated that its rural and urban consumer businesses were at 91 per cent and 72 per cent of year-ago volumes and so far the lender has restructured only Rs 252 crore of loans

Tamil Nadu has borrowed close to a massive Rs 40,000 crore in four-and-a-half months, compared to Rs 17,000 crore last year
What worked in Q2 is Bajaj Finance’s ability to contain costs

Bajaj Finance’s results in the September quarter (Q2), the third consecutive quarter of weak performance, suggest that recovery may be pushed to FY22. Despite the Street’s muted expectation, the 36 per cent net profit decline (worst since FY15) marred by elevated provisioning was a huge let-down. Q2 numbers missed estimates on multiple counts — asset growth, net interest income (NII), and net profit growth. The stock was volatile, falling nearly 5 per cent intra-day after the results were announced, before closing with marginal losses (down 0.88 per cent), ...