Bajaj Finance Q2 consolidated net profit rises 29% to Rs 6,367 crore

Net interest income rose 24% to Rs 13,335 crore from Rs 10,785 crore, while net total income increased 23% to Rs 15,974 crore.

Consolidated assets under management grew 26% to Rs 5.85 lakh crore as of September 30, 2026. The company added Rs 37,680 crore to its AUM during the quarter, while assets under finance increased 27% to Rs 5.74 lakh crore.

“We are very surprised by the growth,” vice-chairman Rajeev Jain said during a call with analysts. “Bajaj Finance expects to disburse 60-62 million new loans and add 18-20 million customers in FY27,” he added.

The management said the finance company expects AUM to grow 26-27% this year and anticipates a marginal compression in net interest margin due to the rise in the repo rate.

Jain said the proposed Rs 17,500-crore capital-raising plan through a qualified institutional placement and preferential warrants was driven by “the growth story of India and the company.”

Bajaj Finance’s Stage 1 gold loan was Rs 22958 crore, Stage 2 at Rs 1099 and Stage 3 at Rs 169 crore. The company attributed the increase to certain short-tenor gold-loan schemes that are no longer being offered. Jain described the rise as transitional. He said that the company will aim to provide longer tenure loan going forward.

The company had 2,022 gold-loan branches at the end of September and plans to increase its network to 2,700-2,800 branches by the end of FY27.

The gold-loan book more than doubled to Rs 24,195 crore from Rs 11,789 crore a year earlier.

Total consolidated borrowings stood at about Rs 5 lakh crore at the end of September. The funding mix comprised 52% from money markets, 29% from banks, 14% from deposits and 5% through external commercial borrowings. The consolidated deposit book stood at Rs 69,754 crore.

The company’s cost of funds improved by nine basis points sequentially to 7.31% in the second quarter. Its liquidity buffer stood at Rs 19,995 crore at the end of September.

Asset quality improved from a year earlier, with gross non-performing assets declining to 1.06% from 1.24% and net NPAs falling to 0.42% from 0.60%. The provision coverage ratio on Stage 3 assets stood at 60%.

The rise in profit came as loan growth boosted interest income and adjusted credit costs declined. Loan losses and provisions increased 4% to Rs 2,166 crore, including Rs 337 crore of prudent management and macroeconomic provisions. Excluding these provisions, loan losses declined 12% to Rs 1,829 crore. Net profit before the additional provisions grew 34% to Rs 6,619 crore.