Bajaj Finance on Thursday reported a 22% year-on-year increase in its net profit to Rs 4,765 crore for the June quarter. Net interest income rose 22% to Rs 10,227 crore while net total income grew 21% to Rs 12,610 crore.
Bajaj Finance
Assets under management increased 25% to reach Rs 4.41 lakh crore, with a growth of Rs 24,789 crore during the quarter under review.
There was some pressure on the asset quality front, with gross NPAs at 2.03% and net NPAs at 0.50%, compared with 0.86% and 0.38%, respectively, in the year-ago period.
Chairman Sanjiv Bajaj said the company has consistently performed well, having exceeded the milestone of 100 million customers. Bajaj Finance is evolving into a FinAI enterprise by integrating artificial intelligence across key areas of revenue, costs, design, risk, credit, productivity, and compliance, he said at the annual general meeting. This transformation aims to enhance growth and improve customer engagement, positioning the company as a financial AI leader.
Rajeev Jain, vice chairman and managing director, said the company has so far completed 29 AI deployments, with plans to reach 100 by the end of the year. Customers can expect to see positive impacts of these AI initiatives. The digital channel has contributed Rs 39,900 crore, or 17%, to the company’s overall business, with the Bajaj Finance app being ranked among the top five financial services apps on Google Play Store, Jain said.
Loans by Bajaj Finance
During the quarter, Bajaj Finance issued 13.49 million new loans, marking a 23% increase. The company added 4.69 million customers, bringing the total customer base to 106.51 million, a 21% increase YoY. It aims to disburse over 50 million new loans in FY26.
Loan losses and provisions increased 26% during the June quarter to Rs 2,120 crore. The cost of funds was 7.79% while the anticipated cost of funds for FY26 is seen between 7.60% and 7.65%. The operating expense as a percentage of net income was 32.7%, marginally lower than 33.33% in the same period last year.