Bajaj Finance Share Price Falls Over 3% As Gold Loan Stress, Margin Concerns Weigh Despite 29% Profit Growth

Bajaj Finance shares fell over 3% on Wednesday, October 21, as concerns over margin pressure and signs of stress in its fast-growing gold loan portfolio overshadowed a 29% rise in Q2 profit.

The stock had closed at ₹957.35 in the previous session and opened at ₹950 on Wednesday. It remained under pressure through the session and closed at ₹926, down ₹31.35 or 3.27%.

The pressure came after the lender reported a sequential rise in bad loans and an increase in overdue accounts in short-tenor gold loans. Bajaj Finance saw around ₹1,047 crore move into Stage 2 in its gold loan portfolio during the September quarter, largely linked to short-tenor schemes. The lender has stopped offering these schemes after seeing an increase in overdue accounts.

Gross NPA rose sequentially to 1.06% from 0.96% in the previous quarter, while margin pressure also remained in focus following the Q2 numbers.

The weakness came despite strong headline earnings. Bajaj Finance reported a 29% year-on-year rise in consolidated net profit to ₹6,367 crore, while net interest income increased 24% and assets under management grew 26% to around ₹5.85 lakh crore.

Why Is Bajaj Finance Share Price Falling Today?

Bajaj Finance shares came under pressure after the Q2 numbers as investors looked beyond the 29% profit growth and focused on asset quality, margin pressure and emerging stress in the gold loan portfolio. Regulatory concerns around some of the lender's products also weighed on sentiment.

• Gold loan stress: Bajaj Finance reported an increase in loans overdue by more than 30 days, with a large part of the rise coming from short-term gold loans. The lender has stopped offering these short-tenor gold loan schemes.

• Asset quality weakened sequentially: Gross NPA rose to 1.06% in the September quarter from 0.96% in the previous quarter, while net NPA increased to 0.42% from 0.39%. Stage 2 and Stage 3 assets also increased by 15 basis points sequentially.

• Margins face pressure: A rising interest-rate environment could put further pressure on net interest margins as funding costs increase. Margins had already declined sequentially during the September quarter.

• Regulatory risks remain: Proposed RBI restrictions on revolving or flexi-loan products and possible changes to insurance distribution commissions have emerged as additional concerns. These businesses contribute to Bajaj Finance's assets and fee income, raising concerns over the potential impact on future growth and profitability.

Bajaj Finance Q2 Results

Bajaj Finance's net total income increased 23% year-on-year to ₹15,974 crore during the September quarter, while the company booked 13.45 million new loans, up 11% from the corresponding quarter last year.

Loan losses and provisions stood at ₹2,166 crore, including a ₹337 crore macroeconomic overlay provision. Excluding the additional provision, loan losses and provisions declined 12% from a year earlier.

The lender also raised its FY27 assets-under-management growth guidance to 26-27%, reflecting continued momentum in its broader lending business even as the market focused on asset quality and margins.

Bajaj Finance shares have fallen 4.84% so far in 2026. At ₹926 on Wednesday afternoon, the stock was down ₹47.10 on a year-to-date basis.

The latest decline came despite double-digit growth across profit, net interest income and assets under management, as the sequential increase in gross NPAs and the movement of short-term gold loans into Stage 2 remained in focus after the September-quarter results.

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