Bajaj Finance, a leading non-bank lender in India, has revised its loan growth forecast for the fiscal year 2026 (FY26) downwards to 22-23%. The adjustment comes as the company addresses increasing asset quality concerns, particularly within its Micro, Small, and Medium Enterprises (MSME) and two-wheeler loan portfolios.

The company cited emerging stress in these specific segments as the primary driver behind the revised guidance. Previously, Bajaj Finance had projected a higher growth rate. This shift reflects a change in strategy, with the company prioritizing risk management over aggressive expansion. They are adopting a 'risk-first' approach to lending, focusing on maintaining asset quality even if it means slower growth.

Bajaj Finance's MSME portfolio has been under scrutiny recently, and the two-wheeler loan segment is also experiencing challenges. While the company hasn't disclosed specific figures regarding the extent of the asset quality issues, the downward revision of growth guidance clearly indicates a heightened level of caution. This move aligns with broader trends in the Indian financial sector, where lenders are increasingly focused on prudent risk management given macroeconomic uncertainties.

Analysts suggest that the revised guidance could impact Bajaj Finance’s profitability in the short term, but it may also strengthen the company's long-term stability. The 'risk-first' approach signals a commitment to responsible lending practices and a proactive response to potential challenges within key portfolio segments. The company will likely provide further details on its strategy and asset quality performance in upcoming investor briefings.