Bajaj Finance, India's leading private-sector non-banking financial company, announced a significant 29 per cent surge in its standalone net profit for the first quarter of FY27, driven by robust growth in net interest income and assets under management.
Key Points
- Bajaj Finance's standalone net profit grew 29% year-on-year to Rs 5,346 crore in Q1FY27, supported by strong net interest income and non-interest income.
- Net interest income (NII) increased 24% year-on-year to Rs 11,495 crore, with assets under management (AUM) rising 23% to cross the Rs 4 trillion mark.
- New loans booked on a standalone basis rose 19% year-on-year to nearly 16 million, while consolidated new loans grew 20% to 16.13 million.
- Asset quality improved, with gross non-performing assets (NPAs) declining to 1.20% and net NPAs falling to 0.49% as of June 30.
- The company expanded its customer franchise by 17% to over 124 million and added 7,400 distribution points, planning to open 150-175 new locations in FY27.
Standalone net profit of Bajaj Finance, India’s largest private-sector non-banking financial company (NBFC), grew 29 per cent year-on-year (Y-o-Y) to Rs 5,346 crore in the quarter ended June 30 (Q1FY27), aided by robust growth in net interest income (NII) and non-interest income.
Strong Financial Performance
Its NII jumped 24 per cent Y-o-Y to Rs 11,495 crore, supported by a 23 per cent rise in assets under management (AUM), which crossed the Rs 4 trillion mark on a standalone basis during the quarter.
Non-interest income rose 18 per cent Y-o-Y to Rs 2,434 crore.
New loans booked by the lender on a standalone basis increased 19 per cent Y-o-Y to nearly 16 million in Q1FY27.
Loan losses and provisions rose 2 per cent Y-o-Y to Rs 1,977 crore during the quarter, including prudent management and macroeconomic provisions of Rs 296 crore.
Excluding these provisions, loan losses and provisions stood at Rs 1,681 crore, down 13 per cent from Q1FY26.
Improved Asset Quality and Capital Adequacy
Asset quality improved, with gross non-performing assets (NPAs) declining to 1.20 per cent as of June 30 from 1.28 per cent a year ago.
Net NPAs fell to 0.49 per cent from 0.63 per cent over the same period.
The company’s provisioning coverage ratio on Stage 3 assets stood at 60 per cent.
Its capital adequacy ratio stood at 20.90 per cent, including Tier-II capital, while the Tier-I capital ratio was 20.01 per cent.
Consolidated Growth and Expansion Plans
On a consolidated basis, the lender’s net profit rose 28 per cent Y-o-Y to Rs 6,081 crore in Q1FY27.
Its customer franchise expanded 17 per cent Y-o-Y to more than 124 million, while consolidated AUM grew 24 per cent Y-o-Y to Rs 5.47 trillion.
New loans booked on a consolidated basis grew 20 per cent Y-o-Y to 16.13 million during the quarter, from 13.49 million in Q1FY26.
The company expects to disburse 60-62 million new loans in FY27.
Bajaj Finance added 5.10 million customers to its franchise in Q1 and expects to add another 18-20 million in FY27.
It also added around 7,400 distribution points during the quarter.
Its geographical presence stood at 4,073 locations, with more than 250,000 active distribution points as of June 30.
The company plans to open 150-175 new locations in FY27.
The lender added 194 gold loan branches during the quarter, taking its network to 1,701 branches, alongside 447 microfinance branches.
It expects to end FY27 with 2,700-2,800 gold loan branches and 520-550 microfinance branches.
Meanwhile, its deposit base contracted 5 per cent Y-o-Y to Rs 68,483 crore as of June-end, compared with Rs 72,109 crore a year earlier.
