Now Reading: Bajaj Finance personal-loan growth slips below 20% on rising competition
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Bajaj Finance personal-loan growth slips below 20% on rising competition
Bajaj Finance personal-loan growth slips below 20% on rising competition
Bajaj Finance's urban personal-loan growth has slowed to below 20% from the third quarter of FY26, as competition from other NBFCs and fintech platforms intensifies. The company's personal-loan book is as large…
Bajaj Finance's urban personal-loan growth has slowed to below 20% from the third quarter of FY26, as competition from other NBFCs and fintech platforms intensifies. The company's personal-loan book is as large as the combined books of the next nine NBFCs, but rivals have been scaling up rapidly.
Regulatory uncertainty over the RBI's proposed revolving credit rules adds to the pressure, potentially weighing on consolidated AUM growth in the second quarter of FY27. However, the NBFC plans to scale up gold loans and expects a recovery in MSME lending from Q3FY27, which could support growth later in the year.
Nomura has raised net profit estimates by 3% for FY27-29 and increased the target price to Rs 1,270 from Rs 1,140, maintaining a Buy rating. The company is expected to deliver 24-26% AUM growth in the closing quarter of FY27, compared with management guidance of 22-24%.
Indian Opinion Analysis
The RBI's proposed revolving credit rule directly targets a product that has been a key growth driver for Bajaj Finance, especially its popular flexi-loan offering. If the final definition restricts how NBFCs can offer these products, the company will need to pivot quickly to other segments. Gold loans and MSME lending have historically been lower-yield, higher-operational-cost businesses, so the real test is whether they can replace the margins lost from personal loans. The FY27 guidance range of 22-24% leaves little room for error if the regulatory hit is larger than Nomura currently models. Investors will watch the Q2 numbers and the final RBI circular for the real signal.
Source: bfsi.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
