Bajaj Finance’s vice chairman and MD Rajeev Jain said on July 24 that 2 & 3-wheeler and MSME businesses will grow slow in financial year 2025-26, as company is going slow on these businesses amid stress.
“MSME business has shown some strain since February so it's coming a little too suddenly. We've taken a whole host of actions to prune business. It's likely that both these businesses will grow lot more slowly in the current year,” Jain said during the post earnings analyst call.
Two & Three-Wheeler Finance AUM declined by 20 percent on-year to Rs 15,703 crore in April-June quarter, from Rs 19,689 crore in a year ago period.
However, MSME lending of the company increased by 29 percent on-year to Rs 52,428 in Q1FY25, from Rs 40,791 crore.
On the asset quality, Jain said that stage 2 assets increased by Rs 324 crore primarily on account of these MSME customers.
Jain added that close to 219 crores of standard account customers were assisted with the restructuring option and relevant provision was taken on these clients.
Jain during the call also said that Bajaj Finance principally track 17 key industries in MSME out of which 13 are seeing are exhibiting signs of slowdown. “Clearly slowing economy and a drop in credit supply is at one level is good because when we used to look at the business loan lending, we used to wonder the market is not large enough to be of that size," he added.
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