Bajaj Finance's Q2 a damp squib despite unlocking; stock falls over 4%

Lender's caution on customer additions and fresh loan disbursals suggests the unpredictable nature of retail asset quality, say analysyts.

Bajaj Finance was the biggest loser among Nifty50 and Sensex components on Wednesday. With an over 4 per cent decline in its share price, the Street labelled the consumer lender’s July-September quarter (second quarter, or Q2) business update as dismal. 

Hopes were high on the back of improving data points, whether in terms of car sales, consumer durables, home improvement products or personal lifestyle utilities, such as apparel and grooming.

On the contrary, Bajaj Finance’s new customer addition at 1.2 million in Q2 was way off the 1.7–1.9-million customer addition levels seen in the past. In a good quarter, the number had