Mumbai, July 24 -- Even as it reported a steady April-June quarter in terms of growth and profitability, Bajaj Finance flagged "unexpected" stress in its unsecured micro, small and medium enterprises (MSME) loan portfolio amid signs of slowing incremental disbursements and new customer additions. The lender said it had pruned most riskier segments, except MSME that was a "work in progress".

The country's largest retail non-banking finance company Thursday posted a consolidated profit after tax at Rs.4,765 crore, up 22% from a year ago; consolidated net interest income was also 22% higher at Rs.10.227 crore.

Newly-returned to the helm of the company, vice chairman and managing director Rajeev Jain said over-leverage of customers across p...