The consolidated net profit attributable to owners of the company, Bajaj Finance Limited, increased by 27.4% year-on-year, reaching ₹5,985.75 crore in the quarter ending June 30, 2026, compared to ₹4,699.61 crore.
Growth in Assets and Income
This growth was driven by an increase in net interest income and assets under management. Consolidated Assets Under Management (AUM) grew by 23.9%, amounting to ₹5.47 trillion as of June 30, 2026, compared to ₹4.41 trillion a year earlier. For the quarter, AUM increased by ₹36,969 crore.
Net interest income, which is the difference between interest earned and interest paid, rose by 22.9% to ₹12,571 crore from ₹10,228 crore. Net total income reached ₹15,224 crore compared to ₹12,460 crore, and operating profit before provisioning grew by 21.6%, totaling ₹10,137 crore.
Operations and Credit Quality
During the quarter, the lending institution issued 16.13 million new loans, which is 19.6% higher than the 13.49 million loans issued a year ago. The customer base expanded by 16.8%, reaching 124.43 million people from 106.51 million.
Regarding loan losses and provisions, they increased by 1.2% to ₹1,993 crore from ₹1,969 crore. The amount for the current quarter included ₹296 crore in prudent management and macroeconomic provisions. Excluding this amount, loan losses and provisions were ₹1,697 crore, a decrease of 13.8% year-on-year.
The ratio of loan losses and provisions to average funded assets decreased by 33 basis points to an annual rate of 1.54% from 1.87%. Excluding additional management and macroeconomic provisions, this ratio stood at 1.31%. The consolidated Non-Performing Asset (NPA) ratio improved by 7 basis points to 0.96% from 1.03%, and the Net NPA ratio improved by 11 basis points to 0.39% from 0.50%. The coverage ratio for third-stage assets was 60%.
Operating Profitability and Capital
Profit before tax increased by 28%, reaching ₹8,149 crore compared to ₹6,367.58 crore. There were no exceptional items in the quarter. Basic earnings per share rose to ₹9.62 from ₹7.57.
Operating expenses amounted to ₹5,087 crore compared to ₹4,124 crore a year earlier. The ratio of operating expenses to net total income increased by 30 basis points to 33.4% from 33.1%. The annual return on assets improved by 20 basis points to 4.7%, while the annual return on equity increased by 140 basis points to 20.4%.
The consolidated deposit portfolio decreased by 5%, amounting to ₹68,534 crore from ₹72,109 crore. According to the company's press release, deposits constituted about 15% of consolidated borrowings. The capital adequacy ratio, including Tier-II capital, was 20.90% as of June 30, 2026, and Tier-I capital was 20.01%.
