Key Financial Performance Metrics
AUM Growth: Record quarterly AUM addition of INR37,000 crores
Profit Growth: 28% year-over-year growth
ROE: 20.4% despite BHFL dilution overhang
ROA: 4.7%
Opex to NTI: 33.4% (marginally higher due to accelerated investments in gold loan and MFI branch expansion plus new labor code impact of 10 basis points/INR60 crores)
Deposit Book: INR68,500 crores (15% of balance sheet)
Credit Quality Performance
Loan Loss to Average AUM: 1.54% (improved from 1.87% YoY)
Additional Provision: INR296 crores management and macroeconomic provision for geopolitical tensions and monsoon uncertainty
Ex-Provision Loan Loss: Would have been 1.31% excluding macroeconomic overlay
New Stage 2 & Stage 3: 1.87% (from 1.94% previous quarter)
GNPA: 0.96%
NNPA: 0.39%
Provision Coverage: 60%
Vintage performance across 3MOB, 6MOB, 9MOB showing significant improvement, now running below pre-COVID FY20 benchmarks.
Business Segment Performance
Gold Loan Business: 112% YoY growth, now 4% of AUM. Targeting 2,700-3,000 branches by year-end with AUM of INR29,000-31,000 crores (organic). Digital platform contributing 25% of gold loan business.
Rural Consumer Finance: 49% growth (20% organic growth, 20% from SKU price increases)
Urban Consumer Finance: 38% growth (20% organic growth, 20% from SKU price increases)
MSME Business: 2% growth (pruning since July 2025 due to risk actions, expected to return to growth momentum by Q3)
FinAI Transformation Update
Team Expansion: AI unit expanding from 230 to 400 people, adding 300 people in digital platform unit
Current Performance: 27 bots live, 45 million customer interactions analyzed in quarter, resulting in 4 lakh additional offers and INR517 crores disbursements
AI Disbursements: INR2,500 crores in Q1, targeting INR11,000-12,000 crores for full year
Service Handling: AI bots handling 71% of DIY customer service volumes
Agentic Applications: 17 deployed out of 118 planned
Custom AI Model: On track for Q2 launch for B2B business (targeting 0.5 million previously unreachable customers), B2C model by October-November
Digital Platform Target: Current year delivering INR50,000 crores business, targeting INR100,000 crores next year
Subsidiaries Performance
Bajaj Housing Finance Limited (BHFL):
- Second AGM held yesterday
- Highest ever quarterly AUM addition
- Disbursements grew 33%, AUM grew 24%
- Opex to NTI improved to 19.6% from 21% YoY
- PAT and PBT grew 23%
- ROE improved to 12.5%
- Asset quality: GNPA 29 bps, NNPA 12 bps
- Under pressure on attrition due to competitive activity
Bajaj Financial Securities Limited (BFSL): Strong AUM growth, profit growth softer at 22%, company maturing
Management Guidance and Outlook
Growth Guidance: Maintaining 22-24% AUM growth corridor for now, potential revision after Q2 performance confirmation
Opex Improvement: Confident of delivering 25-40 bps improvement in opex to NTI for FY27
Credit Cost Outlook: Optimistic for structural improvement, working towards balance sheet resilience in VUCA world
Capital Adequacy: At 21%, BHFL dilution from 86.7% to 75% planned first, then potential capital raise if growth momentum continues
NIM Outlook: Expecting 10-15 bps moderation for FY27
Employee Headcount: 73,261 full-time employees (added 1,650 employees in quarter, 811 net addition excluding gold loan and MFI)
Distribution Strategy
Planning 4-5% distribution expansion annually, identified 160+ branches to open in current year, targeting 170-250 new branches every year
Consumer Leverage Trends
Bureau data showing stabilization with leverage levels at 1% growth (vs 2% historically), 30 DPD data improving across BL, PL, and professional loan portfolios. Consumer debt to GDP at 40% as of March 31.
Competitive Landscape
Intense competition across all lines of business from PSU banks, private banks, and non-banks. Focusing on franchise value through customer centricity, digital transformation, and AI to maintain competitive advantage.
Future Business Launches
Planning to launch two new lines of business by January-February 2027