Bajaj Finance (BFL) on Monday reported a 23% year-on-year increase in its consolidated net profit to Rs 4,948 crore for the quarter ended September 30.
Net interest income rose 22% to Rs 10,785 crore while total net income grew 20% to Rs 13,170 crore. Assets under management (AUM) rose 24% to Rs 4.62 lakh crore.
The company booked 12.17 million new loans during the quarter, marking a 26% growth. The customer base expanded by 20%, reaching 110.64 million.
Loan losses and provisions increased 19% to Rs 2,269 crore. The gross non-performing assets (NPA) stood at 1.24% while the net NPA was 0.60% for the quarter under review.
Rajeev Jain, vice chairman and managing director, said the company experienced broad growth across business segments. However, MSME loans moderated to 18% as part of a cautious approach to ensure resilience and sustainability of the business. The growth guidance for AUM in FY26 has been revised downward to 20-23% from 22-25%, following certain risk management actions taken in the MSME segment.
Jain expressed confidence that growth in other business areas would compensate for this moderation in MSME loans. The company reported growth in new loan segments, including gold, car, tractor, and electric vehicle financing.
Bajaj Finance is expected to acquire 17 million new customers in FY26. The company is phasing out captive two- and three-wheeler loans which have contributed significantly to losses, with plans to complete this transition by next year to bolster balance sheet quality.
In its standalone results, Bajaj Finance’s AUM grew by 23% to Rs 3.38 lakh crore. Net interest income increased 21% to Rs 9,725 crore, and total net income rose by 20% to Rs 11,942 crore.
Loan losses and provisions for the quarter amounted to Rs 2,218 crore, an increase of 17%. Gross NPA and net NPA stood at 1.59% and 0.77%, respectively, compared to 1.33% and 0.58% in the year-ago period. The company has a provisioning coverage ratio of 52% for Stage 3 assets. The profit after tax, excluding exceptional gains and tax, rose 24% to Rs 4,251 crore. The company recorded an exceptional gain (net of tax) of Rs 2,181 crore from the sale of shares in BHFL during its IPO.
The board has appointed Manish Jain as the deputy CEO, adding new responsibilities. The executive management group now has four deputy CEOs and three chief operating officers overseeing company operations.