Bajaj Finance shares drop 4%, are top losers on Nifty 50 after bad loan provisions jump

Gross NPA for the quarter stood at 0.95% from 0.91% sequentially, while net NPAs were at 0.37% from 0.31% last quarter.

During the company's earnings call, Managing Director Rajeev Jain also addressed rumours about a management reshuffle, saying that he would remain actively involved in shaping the strategy of the company and its subsidiaries.

"Lots of noise about me on an ongoing basis. I thought we'd just put all of that to rest. As to what would I do, I'll continue to be actively involved in shaping the strategy of the company — and its subsidiaries. We'll engage with the CEOs of the wholly-owned subsidiaries to achieve short-term and long-term objectives of the company of BFL and its subsidiaries. Anup (Saha) will work for me. The commercial lines of businesses will work for me. Risk compliance, internal audit and CISO which are important statutory positions, will also work for me," Jain said during the earnings call.

Brokerage firm UBS has maintained its sell rating on Bajaj Finance with a price target of ₹6,800.

The brokerage said that consensus is overestimating Bajaj Finance's growth and RoA profile, despite increased competition, regulatory risks and its large size.

On the flip side, HSBC has maintained its buy rating on Bajaj Finance with a price target of ₹8,900. The brokerage has cut EPS estimates for the stock by 3% to 5% over the financial year 2024-2026 to factor in lower loan growth, lower fees and higher credit costs.

Of the 36 analysts that track Bajaj Finance, 29 continue to maintain a "buy" recommendation on the stock, while four have a "sell" rating.

Shares of Bajaj Finance are trading 4% lower at ₹6,900.