Financial Services · NSE: BAJFINANCE · BSE: 500034
Bajaj Finance: how the business works
Bajaj Finance gives personal, consumer, home and business loans to 12.9 crore customers in India, and earned ₹19,017 crore of profit in FY26.
Bajaj Finance Limited · Pune, Maharashtra · Founded 1987
Last updated · Reviewed by Cityfort Research on
- Total income, FY26
- ₹81,990 cr
- Profit for shareholders, FY26
- ₹19,017 cr
- Loans managed (AUM), 30 Sep 2026
- ₹5.85 lakh cr
- Customers, 30 Sep 2026
- 128.85 million
- Promoter group holding, Sep 2026
- 54.67%
01 · The business in one line
What does Bajaj Finance do?
Borrowers pay Bajaj Finance interest on their loans; most of that money goes on interest to its own lenders, staff and provisions for bad loans, and what's left is profit.
- In FY26 borrowers paid the Bajaj Finance group ₹72,776 crore of interest. Fees and other income added ₹9,213 crore.
- Interest paid to bondholders, banks and depositors took ₹28,666 crore. ₹19,017 crore was left as profit for shareholders.
02 · What it sells
What does Bajaj Finance sell?
Shop-counter consumer loans
EMI loans for goods bought at more than 253,900 active shops and dealers. Urban consumer loans were ₹48,098 crore at 30 Sep 2026.
Personal loans
Loans paid straight to the borrower. Urban personal loans were ₹115,237 crore and rural personal loans ₹29,244 crore at 30 Sep 2026.
Home loans and loans against property
Mostly through subsidiary Bajaj Housing Finance. Mortgages were ₹187,133 crore, 32% of all loans, at 30 Sep 2026.
Small-business (MSME) loans
Loans to small and mid-sized firms: ₹53,084 crore at 30 Sep 2026.
Loans against shares and commercial loans
Loans against securities, including margin trading, were ₹41,949 crore; other commercial lending ₹35,271 crore (30 Sep 2026).
Gold, vehicle and other loans
Gold loans were ₹24,195 crore, car loans ₹16,919 crore and two- and three-wheeler loans ₹11,378 crore at 30 Sep 2026.
Fixed deposits
Savers lend to Bajaj Finance through fixed deposits. Deposits were ₹69,754 crore at 30 Sep 2026.
What it does
- Does: Lends to individuals and businesses across India, from 4,091 locations at 30 Sep 2026
- Does: Takes fixed deposits from the public: RBI classes it as a deposit-taking NBFC in the 'upper layer'
- Does: Earns commission for selling insurance of group companies Bajaj Life and Bajaj General
What it does not do
- Does not: It is not a bank; it is a non-bank lender (NBFC) regulated by RBI
- Does not: It is not Bajaj Finserv: Bajaj Finserv is its parent, owning 51.30% at 30 Sep 2026
- Does not: It does not make Bajaj vehicles; Bajaj Auto is a separate company, and loans for its vehicles shrank to ₹2,387 crore by Sep 2026
Source: Investor Presentation Q2 FY27
03 · Who pays it
Who pays Bajaj Finance?
Home buyers and property owners
Not disclosed
Pay interest on home loans and loans against property (mortgages): 32% of loans under management at 30 Sep 2026.
Urban borrowers
Not disclosed
Pay interest on personal loans and shop-counter consumer loans in cities: 30% of loans under management.
Small businesses (MSME)
Not disclosed
Pay interest on business loans: 13% of loans under management.
Commercial borrowers
Not disclosed
Companies and other commercial borrowers: 13% of loans under management.
Rural borrowers
Not disclosed
Pay interest on personal and consumer loans in villages and small towns: 12% of loans under management, up from 9% in Mar 2024.
Group insurance companies
Not disclosed
Pay commission for insurance sold to Bajaj Finance customers. Bajaj Life paid ₹687.56 crore in FY26, up from ₹382.31 crore in FY25.
How spread out the customers are
Bajaj Finance does not disclose income by customer. It had 128.85 million customers at 30 Sep 2026. The shares above are of loans under management, not of income.
Source: Investor Presentation Q2 FY27; Investor Presentation Q4 FY24; Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR
04 · How the money flows · FY26
How does money flow through Bajaj Finance?
Money in
- Interest on loans and investments₹72,776 cr
- Fees, commissions and other income₹9,213 cr
The company
Bajaj Finance
₹81,990 cr came in
Money out
- Interest paid to bondholders, banks and depositors₹28,666 cr
- Employees₹8,979 cr
- Other running costs (incl. one-time ₹265 cr labour-code charge)₹9,063 cr
- Provisions for bad loans₹9,482 cr
- Tax₹6,484 cr
- Profit of Bajaj Housing Finance's other shareholders₹315 cr
- Profit for Bajaj Finance's shareholders₹19,017 cr
- These are the Bajaj Finance group's FY26 accounts, including home-loan subsidiary Bajaj Housing Finance.
- Borrowers paid ₹72,776 crore of interest. Fees, commissions and other income added ₹9,213 crore.
- Bajaj Finance paid ₹28,666 crore of interest to the bondholders, banks and depositors who lend to it.
- Staff cost ₹8,979 crore and other running costs ₹9,063 crore. ₹9,482 crore was set aside for loans that may not be repaid.
- After ₹6,484 crore of tax and ₹315 crore belonging to Bajaj Housing Finance's other shareholders, ₹19,017 crore was profit.
Source: Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR
05 · Where the money goes · FY26
Where does ₹100 of Bajaj Finance's money go?
Bajaj Finance · FY26
Receipt for every ₹100
| Interest paid to its own lenders | ₹35.0 |
|---|---|
| Employees | ₹11.0 |
| Other running costs | ₹11.1 |
| Provisions for bad loans | ₹11.6 |
| Tax | ₹7.9 |
| Bajaj Housing Finance's other shareholders | ₹0.4 |
| Kept as profit | ₹23.2 |
| Total | ₹100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly ₹100 because of rounding.
Source: Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR
06 · What it needs to run
What does Bajaj Finance need to run?
Borrowed money
Group borrowings were ₹435,112 crore at 31 Mar 2026. Its average cost of funds was 7.31% in Q2 FY27.
Credit ratings
AAA (Stable) from CRISIL, ICRA, CARE and India Ratings. A high rating lets it borrow from bond markets at lower rates.
Capital
Capital adequacy (own money as a share of risk-weighted loans) was 20.33% for Bajaj Finance alone at 30 Sep 2026. The company put group leverage at 5.1 times and plans within 5–5.5 times.
Branches and shops
4,091 locations, 2,576 of them in rural areas, and more than 253,900 active shops and dealers at 30 Sep 2026.
People
75,845 full-time employees and 89,484 fixed-term contract staff at 30 Sep 2026.
RBI registration
RBI registers Bajaj Finance as a deposit-taking NBFC and places it in the NBFC 'upper layer'.
Source: Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR; Investor Presentation Q2 FY27; Q2 FY27 results: outcome of board meeting, standalone and consolidated results, press release, RPT statement (quarter ended 30 Sep 2026) and 1 more
07 · Why it makes money
Why does Bajaj Finance make money?
A lender earns the gap between the interest it charges and the interest it pays
Bajaj Finance borrows at bond-market and bank rates and lends at higher rates to many small borrowers. Its customer base lets it sell new loans to people it already knows. As the book grew, running costs per ₹100 of net income fell.
Running costs per ₹100 of net income (cost-to-income)
₹36.1₹33.3
FY22 to FY26
- Shop-counter EMI loans and branches bring in new customers
- Customers stay on its list: 128.85 million at 30 Sep 2026
- It offers them more loans, such as personal and gold loans
- AAA ratings let it borrow from markets and banks
- The gap between interest earned and paid covers staff and bad loans
- Profit adds to capital, which supports more lending
↺ Step 6 feeds back into step 1.
Source: Investor Presentation Q2 FY27
08 · Competitors and what protects it
Who does Bajaj Finance compete with?
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Customer base4 of 5
128.85 million customers at 30 Sep 2026, up from 57.6 million in FY22. 82.36 million of them are in what the company calls its cross-sell franchise.
- Distribution4 of 5
4,091 locations and more than 253,900 active shops and dealers at 30 Sep 2026, including more than 72,700 rural stores.
- Cost of borrowing4 of 5
AAA (Stable) ratings from four Indian agencies. Average cost of funds was 7.31% in Q2 FY27.
- Running costs3 of 5
Operating costs fell from 36.1% of net total income in FY22 to 33.3% in FY26.
Weak spot
Loans without collateral
CRISIL puts personal and consumer-durable loans at about 36% of loans (30 Jun 2026) and says earnings are sensitive to credit costs. FY26 loan losses were 2.09% of average loans, above management's 1.85–1.95% assessment.
Source: Investor Presentation Q2 FY27; Q2 FY27 results: outcome of board meeting, standalone and consolidated results, press release, RPT statement (quarter ended 30 Sep 2026); CRISIL Ratings rationale: Bajaj Finance Ltd, Crisil AAA/Stable assigned and reaffirmed and 1 more
09 · Where growth could come from
Where could Bajaj Finance's growth come from?
In its Q2 FY27 presentation (19 Oct 2026), management said it expects 60–62 million new loans and 18–20 million new customers in FY27. On the call that day, Vice Chairman and MD Rajeev Jain said FY27 loan-book growth would be "probably between 26%, 27%". In Apr 2026 the company had assessed 22–24%.
Gold loans
Working₹24,195 cr, +105% in a year (Sep 2026)
Gold loans more than doubled from ₹11,789 crore in Sep 2025. The company plans 2,700–2,800 gold-loan branches by Mar 2027; it had 2,022 at 30 Sep 2026.
Status: Working, on track against what the company said.
Rural lending
Working12% of loans (Sep 2026), from 9% (Mar 2024)
Rural consumer loans grew 63% and rural personal loans 29% in the year to 30 Sep 2026.
Status: Working, on track against what the company said.
Home loans
Working₹187,133 cr, +30% in a year (Sep 2026)
Mortgages, mostly in Bajaj Housing Finance, were the largest line at 32% of loans under management.
Status: Working, on track against what the company said.
Small-business (MSME) loans
Behind+3% in a year (Sep 2026)
Management said in Apr 2026 that it cut MSME growth to 6% in FY26, from 25–30% earlier.
Status: Behind, behind the company's own plan.
Loans against shares
Working₹41,949 cr, +42% in a year (Sep 2026)
Loans against securities, including margin trading funding, grew from ₹29,508 crore in Sep 2025.
Status: Working, on track against what the company said.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
Source: Investor Presentation Q2 FY27; Q2 FY27 earnings call transcript (call held 19 Oct 2026); Investor Presentation Q4 FY26 and 2 more
10 · The numbers · Consolidated · ₹ crore
How has Bajaj Finance done?
Net interest income
₹44,110 crFY26
Net interest income (interest earned minus interest paid) rose every year, from ₹17,524 crore in FY22 to ₹44,110 crore in FY26.
₹ crore · interest earned minus interest paid · Source: Annual Report FY23 (36th, 2022-23); Annual Report FY22 (35th, 2021-22); Investor Presentation Q2 FY27 and 15 more
See the yearly numbers
See the quarterly numbers
Net profit
₹19,017 crFY26
Profit for Bajaj Finance's shareholders rose every year, from ₹7,028 crore in FY22 to ₹19,017 crore in FY26.
₹ crore · Source: Annual Report FY23 (36th, 2022-23); Annual Report FY22 (35th, 2021-22); Investor Presentation Q2 FY27 and 15 more
See the yearly numbers
See the quarterly numbers
Bad loans (gross NPA)
1.01%FY26
Gross NPA (loans not being repaid) was 1.60% of loans in FY22, 0.85% in FY24 and 1.06% at 30 Sep 2026, on a group basis.
% of loans · gross and net (after provisions) non-performing assets · Source: Annual Report FY23 (36th, 2022-23); Annual Report FY22 (35th, 2021-22); Investor Presentation Q2 FY27 and 15 more
See the yearly numbers
See the quarterly numbers
See all yearly numbers
† Restated by the company. FY22–FY24 EPS are as filed, per ₹2 share, before the Jun 2025 split and bonus that made 10 shares of every old one. FY25 (₹26.89) is as restated in the FY26 annual report; the FY25 report filed ₹268.94. Cityfort does not restate older years itself.
Net interest income = interest earned on loans and investments minus interest paid on deposits and borrowings. Provisions = money set aside for loans that may not be repaid. Financial year runs April to March.
- Figures are for the Bajaj Finance group, including Bajaj Housing Finance and Bajaj Financial Securities. Gross and net NPA, provision cover, ROA and ROE are group figures. Capital adequacy (CRAR) is for Bajaj Finance alone, as the company reports it.
- NBFCs report no CET1 ratio. Tier I capital for Bajaj Finance alone was 20.67% at 31 Mar 2026 and 19.43% at 30 Sep 2026.
- From Q4 FY26 the company counts recoveries on written-off loans as lower provisions, not as income, and restated earlier years. The yearly rows use that restated basis (Q2 FY27 presentation); FY22–FY24 total income in the annual reports was ₹31,648, ₹41,418 and ₹54,983 crore. Profit is unchanged.
- Quarters up to Q4 FY25 are from the older presentations, so their total income includes those recoveries. Their provisions are not shown, because they are on the older basis.
- Bajaj Finance does not report a net interest margin (NIM), so none is shown.
- Bajaj Finance is funded mostly by borrowing, not deposits. Public deposits were ₹68,533 crore at 31 Mar 2026 (16% of group borrowings of ₹435,112 crore) and ₹69,754 crore at 30 Sep 2026 (14%).
- Loans are net loans on the balance sheet. Loans under management (AUM), which also count loans sold on to others, were ₹509,975 crore at 31 Mar 2026 and ₹584,624 crore at 30 Sep 2026.
- Net profit is profit for Bajaj Finance's shareholders, after the part of Bajaj Housing Finance's profit that belongs to its other shareholders. The Q2 FY27 press release headline of ₹6,367 crore is before that deduction.
- One-time items: Q3 FY26 includes a ₹1,406 crore accelerated provision and a ₹265 crore Labour Codes charge; Q4 FY26 a ₹142 crore overlay; Q2 FY27 a ₹337 crore "prudent management and macro-economic provision"; Q4 FY25 a ₹359 crore extra provision and a ₹348 crore tax benefit.
11 · Financial strength · FY26
How strong is Bajaj Finance's balance sheet?
- Loans given (advances)₹4.99 lakh cr
- Capital adequacy (CRAR)
- 21.55%
- capital as a share of risk-weighted loans; regulators set a minimum
- Gross NPA
- 1.01%
- loans not being repaid, as % of all loans
- Net NPA
- 0.41%
- the same, after money already set aside
- Provision cover
- 60.0%
- share of bad loans already provided for
- Cost to income
- 33.3%
- ₹ of running costs per ₹100 of income after interest paid
- Return on assets
- 4.3%
- profit as % of everything the lender owns
- Return on equity
- 18.1%
- profit as % of shareholders' money
Figures as on FY26 year end. Reported by the company; see the dates on each source.
Source: Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR; Investor Presentation Q2 FY27
12 · What it does with profit
What does Bajaj Finance do with its profit?
Dividend per share
₹6.00FY26
Dividend paid for each share, by financial year.
₹ per share · Source: Annual Report FY22 (35th, 2021-22); Annual Report FY23 (36th, 2022-23); Annual Report FY24 (37th, 2023-24) and 2 more
See the numbers
Money raised · 2 Nov 2023
Issued 1,550,000 warrants to parent Bajaj Finserv at ₹7,670 each (₹1,188.85 crore), with 25% paid upfront.
₹1,189 cr
Money raised · 9 Nov 2023
Raised about ₹8,800 crore from institutions (QIP): 12,104,539 shares at ₹7,270 each.
₹8,800 cr
Money raised · 1 Oct 2026
The board approved a QIP of up to ₹11,700 crore and warrants of up to ₹5,800 crore to Bajaj Finserv. Both need shareholder approval and had not been completed by 19 Oct 2026.
Source: Annual Report FY24 (37th, 2023-24); Investor Presentation Q2 FY27; Q2 FY27 results: outcome of board meeting, standalone and consolidated results, press release, RPT statement (quarter ended 30 Sep 2026)
13 · Who runs it
Who runs Bajaj Finance, and did they deliver?
Sanjiv Bajaj
Chairman
Also Chairman and MD of parent Bajaj Finserv.
Rajeev Jain
Vice Chairman and Managing Director · since 2025
Executive Vice Chairman from 1 Apr 2025; Vice Chairman and MD from 22 Jul 2025 to 31 Mar 2028.
Sandeep Jain
Chief Operating Officer and Chief Financial Officer
Manish Jain
Deputy CEO
Also MD of subsidiary Bajaj Financial Securities.
What they said, and what happened
1 delivered · 1 partly delivered · 2 missed · 2 too early to tell
Said on 29 Apr 2025
Add 14–16 million customers in FY26 (management assessment, Q4 FY25 presentation).
DeliveredWhat happened
Bajaj Finance added 17.51 million customers in FY26.
Said on 29 Apr 2025
Grow loans under management (AUM) 24–25% in FY26. On 3 Feb 2026 Rajeev Jain put full-year growth at 22–23%.
Partly deliveredWhat happened
AUM grew 22.4%, from ₹416,661 crore to ₹509,975 crore: inside the Feb 2026 range, below the Apr 2025 one.
Said on 29 Apr 2025
Keep FY26 loan losses at 1.85–1.95% of average loans, with return on assets of 4.4–4.6% and return on equity of 19–20%.
MissedWhat happened
Reported loan losses were 2.09%, ROA 4.3% and ROE 18.1%. Before one-time items, as the company defines them, they were 1.93%, 4.6% and 19.2%.
Said on 29 Apr 2026
Rajeev Jain said the Bajaj Auto two- and three-wheeler loan book would wind down to under about ₹1,500 crore by Sep 2026.
MissedWhat happened
The book was ₹2,387 crore at 30 Sep 2026, down from ₹4,288 crore at 31 Mar 2026.
Said on 29 Apr 2026
Grow AUM 22–24% in FY27, with loan losses of 1.45–1.60% of average loans (management assessment, Q4 FY26 presentation).
Too early to tellWhat happened
At 30 Sep 2026 AUM was 26% higher than a year earlier. Loan losses were 1.55% in the first half of FY27.
Said on 19 Oct 2026
Have 2,700–2,800 gold-loan branches by the end of FY27 (Q2 FY27 presentation).
Too early to tellWhat happened
There were 2,022 gold-loan branches at 30 Sep 2026.
Source: Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR; Q4 FY26 earnings call transcript (call held 29 Apr 2026); Investor Presentation Q4 FY25 (incl. management assessment for FY26) and 3 more
14 · Governance signals
What do Bajaj Finance's governance filings show?
- Auditor
- Price Waterhouse LLP and Kirtane & Pandit LLP (joint statutory auditors, FY25 to FY27), since 2024
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- Bajaj Finserv, the parent, owned 51.30% at 30 Sep 2026. In FY26 Bajaj Finance earned ₹687.56 crore of commission from group insurer Bajaj Life and ₹66.76 crore from Bajaj General. It paid Bajaj Finserv ₹1,788.45 crore of dividends.
- Credit rating
- CRISIL AAA (Stable), 17 Sep 2026
A credit rating describes the company's ability to repay debt. It is not a rating of the share.
Flags to know about
regulatory · 15 Nov 2023
RBI stopped two loan products for about six months
On 15 Nov 2023 RBI directed Bajaj Finance to stop sanctioning and disbursing loans under its "eCom" and "Insta EMI Card" products. RBI lifted the restriction on 2 May 2024 "based on the remedial actions taken by the Company".
regulatory · 15 Jul 2024
IRDAI penalty of ₹2 crore
The insurance regulator IRDAI fined Bajaj Finance ₹2 crore on 15 Jul 2024 under its rules for insurance sellers (corporate agents). The annual report says the issues were commission reconciliation and customer records.
regulatory · 21 Jan 2025
Tax demands the company disputes
A GST order of 21 Jan 2025 demands ₹341.29 crore of GST plus an equal penalty on upfront interest (Jul 2017–Mar 2024). A service-tax order of 15 Nov 2021 demands ₹188.37 crore plus an equal penalty. Based on legal advice, the company says the demands are "not tenable".
other · 21 Jul 2025
Managing Director resigned after under four months
Anup Saha became MD on 1 Apr 2025 and resigned at close of business on 21 Jul 2025, "due to personal reasons". Rajeev Jain became Vice Chairman and MD from 22 Jul 2025.
auditor
Auditors rotated under RBI's rules
Price Waterhouse LLP and Kirtane & Pandit LLP replaced Deloitte Haskins & Sells LLP and G. M. Kapadia & Co. from FY25, under RBI's three-year rotation rule. The FY26 audit opinion was unmodified.
Source: Annual Report FY24 (37th, 2023-24); Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR; Investor Presentation Q2 FY27 and 2 more
15 · What the market paid · price as of 30 Jun 2026
What did the market pay for Bajaj Finance on 30 Jun 2026?
Price as of 30 Jun 2026 (shown for education; prices change daily).
Price as of 30 Jun 2026 (data at least 3 months old, shown for education): ₹1,004.75 on NSE. Market value: ₹625,204 crore, on 6,222,481,865 shares (31 Mar 2026). P/E is the share price divided by one year's profit per share: here FY26 EPS of ₹30.60, giving 32.8. P/B divides the price by book value (shareholders' money) per share: ₹113,999 crore of group equity at 31 Mar 2026, or ₹183.21 a share, giving 5.48. EV/EBITDA is not shown, because interest is a lender's main running cost.
- Share price
- ₹1,004.75
- Market value (market cap)
- ₹625,204 cr
- P/E
- 32.8×
- P/B
- 5.5×
Source: NSE equity bhavcopy, 30 Jun 2026 (BAJFINANCE close); Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR
16 · What could go wrong
What could go wrong for Bajaj Finance?
- Regulation
Draft RBI rules on revolving credit
RBI's draft directions of 6 Aug 2026 would stop NBFCs offering revolving credit lines. CRISIL says some Bajaj Finance products could be affected. On 19 Oct 2026 Rajeev Jain said comments had been submitted and hoped RBI would find a middle path.
Watch RBI's final directions and any product changes Bajaj Finance discloses.
- Concentration
A large share of loans has no collateral
CRISIL puts personal and consumer-durable loans at about 36% of loans (30 Jun 2026) and says earnings are sensitive to credit costs. FY26 loan losses were 2.09% of average loans, above management's 1.85–1.95% assessment.
Watch Loan losses against management's FY27 range of 1.45–1.60% (1.55% in H1 FY27).
- Cash and liquidity
More reliance on market borrowing
Money-market borrowing rose from 47% of borrowings (Mar 2024) to 52% (Sep 2026). Public deposits fell from 21% to 14% over the same period.
Watch Cost of funds (7.31% in Q2 FY27) and the deposit share of borrowings.
- Execution
Slower small-business lending
Management said in Apr 2026 that it cut MSME loan growth to 6% in FY26, from 25–30% earlier. MSME loans grew 3% in the year to 30 Sep 2026.
Watch MSME loan growth and MSME share of loans (13% at 30 Sep 2026).
- Execution
Bad loans in the shrinking Bajaj Auto book
Rajeev Jain said in Apr 2026 that loans for Bajaj Auto two- and three-wheelers were under 1% of AUM but 13% of gross NPA and 5% of credit costs in Q4 FY26.
Watch The remaining captive book: ₹2,387 crore at 30 Sep 2026.
- Legal
Disputed GST and service-tax demands
Orders demand ₹341.29 crore of GST and ₹188.37 crore of service tax, each with an equal penalty. The company says, based on legal advice, the demands are not tenable.
Watch Any ruling, payment or provision disclosed in results or the annual report.
Source: CRISIL Ratings rationale: Bajaj Finance Ltd, Crisil AAA/Stable assigned and reaffirmed; Q2 FY27 earnings call transcript (call held 19 Oct 2026); Investor Presentation Q2 FY27 and 5 more
17 · How it got here
How did Bajaj Finance get here?
1987
Milestone
Founded as Bajaj Auto Finance
Incorporated on 25 Mar 1987 as Bajaj Auto Finance Pvt Ltd; listed on BSE on 7 Jun 1994.
2023
Milestone
New shares sold to institutions and the parent
A ₹8,800 crore share sale to institutions (QIP) and ₹1,188.85 crore of warrants to Bajaj Finserv (25% paid upfront), in Nov 2023.
2023
Crisis
RBI stops two loan products
On 15 Nov 2023 RBI directed Bajaj Finance to stop lending under "eCom" and "Insta EMI Card".
2024
Milestone
RBI lifts the restriction
RBI lifted the restriction on 2 May 2024, citing remedial actions by the company.
2024
Business-model change
Home-loan arm lists
Bajaj Housing Finance's ₹6,560 crore IPO in Sep 2024 included ₹3,000 crore of shares sold by Bajaj Finance. Outside shareholders now get part of its profit.
2025
Milestone
Share split and bonus
Each ₹2 share was split into two ₹1 shares, then four bonus shares were given for each one, approved on 7 Jun 2025.
2025
Milestone
Part of the Bajaj Housing Finance stake sold
About 2% sold on the market in Dec 2025 for a ₹1,416 crore net gain, cutting the holding to 86.71%. SEBI rules require it to fall to 75% or less.
2026
Business-model change
Bajaj Auto vehicle loans wound down
Captive two- and three-wheeler loans fell from ₹10,691 crore (Mar 2025) to ₹2,387 crore (Sep 2026). The annual report calls it a recalibration.
2026
Milestone
New fund raise approved by the board
On 1 Oct 2026 the board approved a QIP of up to ₹11,700 crore and warrants of up to ₹5,800 crore, subject to shareholder approval.
Source: Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR; Annual Report FY24 (37th, 2023-24); Investor Presentation Q1 FY25 and 5 more
18 · Both sides
What do supporters and critics point to?
What supporters point to
- Customers rose from 57.6 million in FY22 to 128.85 million at 30 Sep 2026.
- Profit for shareholders rose every year, from ₹7,028 crore in FY22 to ₹19,017 crore in FY26.
- Operating costs fell from 36.1% of net total income in FY22 to 33.3% in FY26.
- Four Indian agencies rate its debt AAA (Stable); CRISIL reaffirmed its rating on 17 Sep 2026.
- Gross NPA was 1.06% of loans at 30 Sep 2026, against 1.60% in FY22.
What critics point to
- Return on equity fell from 23.5% in FY23 to 18.1% in FY26.
- FY26 loan losses were 2.09% of average loans, above management's 1.85–1.95% assessment.
- RBI stopped two of its loan products from Nov 2023 to May 2024.
- Public deposits fell from 21% of borrowings in Mar 2024 to 14% in Sep 2026.
- CRISIL says draft RBI rules on revolving credit could affect some of its products.
19 · What to watch next
What should you watch next at Bajaj Finance?
Next event
Q3 FY27 results (expected, based on last year's 3 Feb date)
3 Feb 2027
Expected, based on last year's date
RBI's final rules on revolving credit
The 6 Aug 2026 draft would stop NBFCs offering revolving credit lines. CRISIL says some Bajaj Finance products could be affected.
Loan losses
Management assessed FY27 loan losses at 1.45–1.60% of average loans in Apr 2026. The first half of FY27 was 1.55%.
Shareholder vote on the fund raise
The board approved a QIP of up to ₹11,700 crore and warrants to Bajaj Finserv of up to ₹5,800 crore on 1 Oct 2026. Shareholders still have to approve them.
20 · Key facts
Key facts about Bajaj Finance
- What does Bajaj Finance do?
- Bajaj Finance is a non-bank lender (NBFC) based in Pune. It gives personal, consumer, home, small-business, gold and other loans in India. Its loans under management (AUM) were ₹584,624 crore at 30 Sep 2026.
- How does Bajaj Finance make money?
- Bajaj Finance earns mostly interest on loans. In FY26 interest was ₹72,776 crore of the group's ₹81,990 crore total income; fees and other income made up the other ₹9,213 crore.
- Who are Bajaj Finance's customers?
- Bajaj Finance had 128.85 million customers at 30 Sep 2026. Home loans and loans against property (mortgages) were 32% of its loans, urban lending 30%, small businesses (MSME) 13%, commercial lending 13% and rural lending 12%.
- How big is Bajaj Finance?
- Bajaj Finance's group total income was ₹81,990 crore in FY26. Profit for its shareholders was ₹19,017 crore in FY26, up from ₹16,638 crore in FY25.
- Who owns Bajaj Finance?
- Bajaj Finserv owned 51.30% of Bajaj Finance at 30 Sep 2026, and the promoter group as a whole owned 54.67%, according to Bajaj Finance's Q2 FY27 investor presentation.
- Where does Bajaj Finance get the money it lends?
- Bajaj Finance's group borrowings were ₹435,112 crore at 31 Mar 2026. At 30 Sep 2026, money markets supplied 52% of borrowings, banks 29%, public deposits 14% and foreign loans (ECB) 5%.
- How many of Bajaj Finance's loans are not being repaid?
- Bajaj Finance's gross non-performing assets (loans not being repaid) were 1.06% of loans at 30 Sep 2026, and 0.42% after provisions (net NPA), on a group basis.
- Which companies does Bajaj Finance own?
- At 30 Sep 2026 Bajaj Finance owned 86.70% of Bajaj Housing Finance, a listed home-loan company, and 100% of Bajaj Financial Securities, a broking firm.
Source: Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR; Investor Presentation Q2 FY27; Q2 FY27 results: outcome of board meeting, standalone and consolidated results, press release, RPT statement (quarter ended 30 Sep 2026)
Terms on this page
Each explains the term in plain English, with the same number from other companies on Cityfort.
21 · Sources and changes
Where every number on this page comes from
Sources (23 documents)
- S1Annual Report FY26 (39th, 2025-26), incl. standalone and consolidated financial statements and BRSR · BSE (company filing) · Tier 1: company or exchange filing · 7 Jul 2026
- S2Annual Report FY25 (38th, 2024-25) · BSE (company filing) · Tier 1: company or exchange filing · 1 Jul 2025
- S3Annual Report FY24 (37th, 2023-24) · BSE (company filing) · Tier 1: company or exchange filing · 26 Jun 2024
- S4Annual Report FY23 (36th, 2022-23) · BSE (company filing) · Tier 1: company or exchange filing · 3 Jul 2023
- S5Annual Report FY22 (35th, 2021-22) · BSE (company filing) · Tier 1: company or exchange filing · 4 Jul 2022
- S6Q2 FY27 results: outcome of board meeting, standalone and consolidated results, press release, RPT statement (quarter ended 30 Sep 2026) · NSE (company filing) · Tier 1: company or exchange filing · 19 Oct 2026
- S7Q1 FY27 results: standalone and consolidated results and press release (quarter ended 30 Jun 2026) · NSE (company filing) · Tier 1: company or exchange filing · 30 Jul 2026
- S8Investor Presentation Q2 FY27 · BSE (company filing) · Tier 1: company or exchange filing · 19 Oct 2026
- S9Investor Presentation Q1 FY27 · BSE (company filing) · Tier 1: company or exchange filing · 30 Jul 2026
- S10Investor Presentation Q4 FY26 · BSE (company filing) · Tier 1: company or exchange filing · 29 Apr 2026
- S11Investor Presentation Q3 FY26 · BSE (company filing) · Tier 1: company or exchange filing · 3 Feb 2026
- S12Investor Presentation Q2 FY26 · BSE (company filing) · Tier 1: company or exchange filing · 10 Nov 2025
- S13Investor Presentation Q1 FY26 · BSE (company filing) · Tier 1: company or exchange filing · 24 Jul 2025
- S14Investor Presentation Q4 FY25 (incl. management assessment for FY26) · BSE (company filing) · Tier 1: company or exchange filing · 29 Apr 2025
- S15Investor Presentation Q3 FY25 · BSE (company filing) · Tier 1: company or exchange filing · 29 Jan 2025
- S16Investor Presentation Q2 FY25 · BSE (company filing) · Tier 1: company or exchange filing · 22 Oct 2024
- S17Investor Presentation Q1 FY25 · BSE (company filing) · Tier 1: company or exchange filing · 23 Jul 2024
- S18Investor Presentation Q4 FY24 · BSE (company filing) · Tier 1: company or exchange filing · 25 Apr 2024
- S19Q2 FY27 earnings call transcript (call held 19 Oct 2026) · BSE (company filing) · Tier 1: company or exchange filing · 23 Oct 2026
- S21Q4 FY26 earnings call transcript (call held 29 Apr 2026) · BSE (company filing) · Tier 1: company or exchange filing · 4 May 2026
- S22Q3 FY26 earnings call transcript (call held 3 Feb 2026) · BSE (company filing) · Tier 1: company or exchange filing · 7 Feb 2026
- S23CRISIL Ratings rationale: Bajaj Finance Ltd, Crisil AAA/Stable assigned and reaffirmed · CRISIL Ratings · Tier 2: rating agency or regulator · 17 Sep 2026
- S24NSE equity bhavcopy, 30 Jun 2026 (BAJFINANCE close) · NSE · Tier 1: company or exchange filing · 30 Jun 2026
Changes to this page (v1 · 26 Oct 2026)
- v1 · 26 Oct 2026First version. (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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