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Informist, Monday, Nov. 10, 2025

 

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--Bajaj Finance Jul-Sept consol net profit INR 48.75 bln 
--Analysts saw Bajaj Finance Jul-Sept consol net profit INR 51.16 bln 
--Bajaj Finance Jul-Sept consol PAT INR 48.75 bln vs INR 40.00 bln year ago 
--Bajaj Finance Jul-Sept consol revenue INR 201.79 bln vs INR 170.91 bln year ago 
--Bajaj Finance consol gross NPA ratio 1.24% on Sept 30 vs 1.06% year ago 
--Bajaj Finance consol net NPA ratio 0.60% on Sept 30 vs 0.46% year ago 
--Bajaj Finance Apr-Sept consol PAT INR 95.75 bln vs INR 79.12 bln year ago 
--Bajaj Finance consol AUM at INR 4.62 tln as on Sept 30, up 24% on year 
--Bajaj Finance Q2 consol net interest income INR 107.85 bln, up 22% on year 
--Bajaj Finance Q2 consol loan loss, provisions INR 22.69 bln, up 19% on yr 
--Bajaj Finance consol deposits INR 697.66 bln as on Sept 30, up 5% on year 

 

By Kabir Sharma

 

MUMBAI – A sharp growth in assets under management, coupled with a healthy rise in net interest income, helped Bajaj Finance report a 22% increase in consolidated net profit for the quarter ended September. A slight moderation in the operating expenses-to-net total income ratio also helped the company report a rise in its bottom line. 

 

The non-bank financier reported a net profit of INR 48.75 billion, up from INR 40.00 billion a year ago. Despite the sharp rise in profit, it missed analysts' expectations by a fair margin. Analysts had pegged Bajaj Finance's consolidated net profit for the September quarter at INR 51.16 billion.

 

Sequentially, the bottom line was up 3.7% from INR 47.00 billion. The lender declared its earnings after market hours. Shares of Bajaj Finance closed 1.7% higher at INR 1,085 on the National Stock Exchange. 

 

The lender's assets under management grew by 24% to INR 4.62 trillion as of Sept. 30. AUM increased by INR 208.11 billion in the September quarter. The sharp rise in AUM was supported by an increase in the number of new loans booked. New loans in Jul-Sept rose 26% on year to 12.17 million.

 

The company, which added 4.13 million customers to its franchise in Jul-Sep, expects to add 16-17 million new customers to its franchise in the current financial year. Customer franchise stood at 110.64 million as of Sept. 30. The lender saw strong momentum in consumption finance during the festive season, disbursing 6.3 million consumer loans, recording 27% volume growth and 29% value growth compared to the same period last year, the company said.  

 

The lender's net interest income — its core income — increased by 22% year on year to INR 107.85 billion in Jul-Sept. The ratio of operating expenses to net total income improved to 32.6% in the reporting quarter from 33.2% year ago, supporting the bottom line. "AI (artificial intelligence) implementation across each line of business has started and should start to reflect in costs and productivity benefits in the next 12-18 months," the company said. 

 

The gross non-performing assets ratio and net non-performing assets ratio as of Sept. 30 stood at 1.24% and 0.60%, respectively, compared with 1.06% and 0.46% year ago. The provisioning coverage ratio on stage 3 assets was 52%.

 

The company's deposits rose 5% on year to INR 697.66 billion. Deposits constitute approximately 18% of the consolidated borrowings and 23% of the standalone borrowings, the company said. "To optimise cost of funds, the company is reducing reliance on deposits in FY26," it said. 

 

Bajaj Finance said its consumer leverage remains a concern. "The company continues to take ongoing actions to reduce the contribution of customers with multiple loans. The vintage credit performance, as a result, is significantly better except for MSME (micro, small, and medium enterprises)," the company said. Loan losses and provisions were up 19% to INR 22.69 billion in Jul-Sept.

 

Credit cost remained elevated in the captive two- and three-wheeler and MSME businesses, the company said. "The company has cut 25% of its unsecured MSME volumes and thus AUM growth for MSME lending will be 10-12% in FY26," it said. The company did not provide the credit cost for the quarter in the investor presentation. 

 

The capital adequacy ratio, including Tier II capital, was 21.23% as of Sept. 30. Tier I capital was 20.54%. The company's liquidity buffer stood at INR 160.58 billion as of Sept. 30.

Bajaj Finance board approved Manish Jain as the deputy chief executive officer in addition to his current role as managing director. Jain will also be responsible for the company's loan against securities, commercial lending and deposits businesses, the company said.  End

 

Edited by Saji George Titus

 

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