Bajaj Finance adds 321 gold-loan branches, reaching 2,022, but halts short-tenor schemes
According to NDTV Profit, Bajaj Finance added 321 gold-loan branches in the September quarter, taking its network to 2,022. It has also stopped its short-tenor schemes, meaning loans with shorter repayment periods, after customers missed interest payments or loan renewals. Those lapses pushed up its Stage 2 assets, loans flagged as showing early signs of strain.
What this means
The lender is expanding its gold-loan reach quickly while removing one product that customers were struggling to keep current. Borrowers who relied on the shorter-tenor option lose that choice, and the missed payments have already shown up in a weaker-looking loan book. The next thing to watch is whether Stage 2 assets ease once these schemes stop, or whether the strain spreads as the larger branch network starts lending.
Most affected: Gold-loan lenders and NBFC asset quality
Key takeaway: Watch Bajaj Finance's next Stage 2 disclosure to see whether stopping short-tenor gold-loan schemes contained the missed payments as the 2,022-branch network grows.
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