Indian lender Bajaj Finance projects 26%-27% growth in assets under management in fiscal 2027, while management expects a smaller captive two- and three-wheeler loan book to ease credit costs as margins moderate.
The projection exceeds the company's 23%-25% medium-term growth outlook. Vice Chairman and Managing Director Rajeev Jain gave both figures on an Oct. 19 earnings call and said he expected only a marginal further decline in net interest margin.
The captive loan book fell 66% from a year earlier to ₹2,387 crore as of Sept. 30, 2026, the company's investor presentation showed. Its gross nonperforming loan ratio nevertheless rose to 18.45% from 12.08%. Management expects the declining exposure to help reduce future credit costs, though it did not quantify the expected improvement.
Loan losses and provisions totaled ₹2,166 crore in the September quarter. That included a ₹337 crore management and macroeconomic provision. Excluding that provision, the charge was ₹1,829 crore, down 12% from a year earlier.
Consolidated assets under management reached ₹584,624 crore at quarter-end, up 26% year over year after a ₹37,680 crore increase during the quarter. Net interest income grew 24% to ₹13,335 crore, while profit after tax before minority interest rose 29% to ₹6,367 crore.
Funding costs offered some near-term relief. The company's cost of funds reached 7.31%, nine basis points below the preceding quarter. Chief Operating Officer and Chief Financial Officer Sandeep Jain said interest-rate hedges helped lower the cost, though he expected policy rates to put pressure on funding later in the fiscal year.
Elsewhere in the portfolio, gold loans grew 105% year over year to ₹24,195 crore. Bajaj Finance said short-tenor gold-loan schemes accounted for ₹1,047 crore of a quarterly increase in Stage 2 and Stage 3 assets. It did not expect that transitional increase to affect credit costs.
For fiscal 2027, the company targets 60 million to 62 million new loans and 18 million to 20 million additional customers. Its board approved a proposal Oct. 1 to raise up to ₹17,500 crore, subject to shareholder approval.
