Bajaj Finance Q4 PAT rises 22% to ₹5,465 crore; lower provisions, stable asset quality support earnings

Bajaj Finance Ltd reported a steady March quarter performance, with profit growth supported by strong lending momentum and easing credit costs, even as asset quality remained broadly stable.

Net profit rose 22% to ₹5,465 crore, compared with ₹4,480 crore in the year-ago period, while revenue increased 18% to ₹21,606 crore.

Rajiv Bajaj to step down from board

The company said Rajiv Bajaj will step down as a non-executive director and will not seek re-election at the upcoming annual general meeting scheduled for July 30, 2026.

Rajiv Bajaj, who is the managing director of Bajaj Auto Ltd , held a non-executive role at Bajaj Finance, with no involvement in day-to-day operations. The company’s business continues to be led by its management team.

Core lending remains strong

The company’s core business continued to drive growth, with, assets under management (AUM) up 21% YoY and net interest income (NII) rising 20%.

Profit before tax stood at ₹6,484 crore, up from ₹4,904 crore a year earlier, reflecting healthy underlying operating performance.

Lower credit costs boost profitability

A key driver of earnings this quarter was a decline in provisioning.

Impairment on financial instruments fell to ₹1,952 crore, compared with ₹2,141 crore in the year-ago period and ₹3,370 crore in the previous quarter, when the company had taken an accelerated provisioning hit.

The company had earlier strengthened its expected credit loss (ECL) framework, including a one-time provisioning impact of about ₹1,406 crore in the December quarter, which is now supporting profitability.

Asset quality stable, buffers intact

Asset quality trends remained largely stable:

• Gross NPA: 1.27% vs 1.18% YoY

• Net NPA: 0.52% vs 0.56% YoY

While gross NPAs saw a marginal uptick, the improvement in net NPAs indicates strong provisioning buffers, keeping delinquencies under control.

Balance sheet remains robust

The lender continues to maintain strong financial buffers:

• Capital adequacy ratio (CRAR): 21.55%

• Liquidity coverage ratio (LCR): over 220%

These levels provide sufficient headroom to support future growth.

Dividend announced

The board has recommended a final dividend of ₹6 per share (face value ₹1) for FY26, including a special payout of ₹0.60 per share linked to gains from stake sale in Bajaj Housing Finance.

Shares of Bajaj Finance Ltd ended 0.99% higher at ₹932.80 apiece on Wednesday. The stock has risen over 2.5% in the past year, outperforming the benchmark Nifty 50, which has declined nearly 1% during the same period.