Bajaj Finance June Quarter Profit Rises 20% on AUM, NII Growth

Bajaj Finance posted a 20.1% rise in consolidated net profit to ₹47.00 billion for the June quarter, driven by strong growth in assets under management and a sharp increase in net interest income.

Assets under management rose 25% on year to ₹4.41 trillion as of June 30, with a quarterly addition of ₹247.50 billion. The company booked 13.49 million new loans during the quarter, up from 10.97 million a year ago. Its customer base expanded to 106.51 million, a sequential increase of 4.69 million.

Deposits rose 15% to ₹721.09 billion, accounting for 19% of consolidated borrowings. The company plans to reduce its reliance on deposits in the coming year to optimise funding costs.

Net interest income increased 22% to ₹102.27 billion. Loan losses and provisions rose 26% to ₹21.20 billion, driven by higher credit costs in the two-wheeler and MSME segments. The company said it has initiated corrective actions and expects slower AUM growth in these segments in 2025–26.

Gross and net non-performing asset ratios stood at 1.03% and 0.50%, respectively, compared with 0.86% and 0.38% a year ago. Bajaj Finance noted these remained among the lowest in the industry.

The company’s cost of funds declined 20 basis points sequentially to 7.79%, and is expected to remain in the 7.60–7.65% range through the year.

During the quarter, it added 85 standalone gold loan branches and four standalone microfinance branches, taking its network to 4,192 branches, including 1,254 gold loan and 337 microfinance branches.

Among subsidiaries, Bajaj Housing Finance's AUM grew 24% on year to ₹1.20 trillion, supported by gains in home loans, loan against property, lease rental discounting, and developer finance. It reported a profit after tax of ₹5.83 billion, up 21%.

Bajaj Financial Securities' AUM rose 39% to ₹30.98 billion, with net profit increasing 37% to ₹410 million.