Bajaj Finance reported a 28.7% year-on-year rise in quarterly profit on Monday, driven by a steady increase in its loan portfolio volume.
The consolidated profit after tax for the non-banking financial company reached ₹6,367 crore (US$670.74 million) for the second quarter ending September 30, compared to ₹4,948 crore the previous year.
Overall lending growth among non-banking lenders was supported by high demand for consumer financing, consistent borrowing by small businesses, and growing demand for housing and gold loans.
Asset Dynamics and Growth Segments
Bajaj Finance's assets under management increased by 26% year-on-year for the September quarter, marking the fastest pace since March 2025. Meanwhile, gold loans doubled year-on-year, and rural consumer financing grew by 63%.
Loans to small and medium enterprises, for which the company has tightened underwriting after a period of higher default rates, increased by 3%.
Financial Metrics
The company's net interest income—the difference between interest earned on loans and interest paid on borrowings—rose by 24% to ₹13,335 crore. The gross non-performing asset ratio of the non-banking lender improved to 1.06% from 1.24% the previous year, but sequentially worsened compared to 0.96%.
The cost of credit, which reflects provisions set aside for potential loan losses, improved to 1.56% compared to 1.88% the previous year, but remained virtually unchanged sequentially.