Bajaj Finance Q2 results: Profit rises 29% to Rs 6,367 crore, NII up 24%

Profit before tax increased 29% to Rs 8,537 crore. Loan growth and income The non-banking financial company booked 13.45 million new loans during the second quarter of FY27, up 11% from a year earlier. It added 4.42 million customers, taking its total customer base to 128.85 million. Net interest income increased 24% to Rs 13,335 crore, while net total income rose 23% to Rs 15,974 crore. Operating expenses accounted for 33% of net total income.

Bajaj Finance said loan-volume comparisons were affected by the earlier onset of the festive season last year. It expects to disburse 60-62 million new loans and add 18-20 million customers during FY27. 06% from 1.24% a year earlier, while the net NPA ratio improved to 0.42% from 0.60%. Loan losses and provisions nevertheless increased to Rs 2,166 crore from Rs 2,080 crore. The latest quarter included an additional Rs 337 crore provision for management and macroeconomic risks.

Excluding this amount, loan losses and provisions fell 12% to Rs 1,829 crore, the company said. Stage 2 and Stage 3 assets, which indicate elevated credit risk or impairment, increased to 2.02% of loans from 1.87% in the June quarter. Bajaj Finance attributed much of the increase to discontinued short-tenor gold-loan schemes and said it did not expect the transition to affect credit costs. Funding and subsidiary performance The company’s cost of funds fell nine basis points sequentially to 7.31%.

Its liquidity buffer stood at Rs 19,995 crore, while deposits totalled Rs 69,754 crore, accounting for 14% of consolidated borrowings. Capital adequacy stood at 20.33% at the end of September. Among subsidiaries, Bajaj Housing Finance reported an 18% increase in quarterly profit to Rs 757 crore, with assets under management rising 25% to Rs 1,58,205 crore. Bajaj Financial Securities posted a 36% rise in profit to Rs 64 crore.

Its assets under finance increased 59% to Rs 12,058 crore. The business added 121,000 customers during the quarter, taking its total customer base to 1.61 million as of September 30. The proposal comprises an equity issue of up to Rs 11,700 crore through a qualified institutional placement and convertible warrants worth up to Rs 5,800 crore to promoter Bajaj Finserv. The fundraising remains subject to shareholder and other required approvals.

The company’s disclosure said the warrants would be convertible into equity shares, with at least 25% of the consideration payable on allotment and the balance payable when the conversion option is exercised. The promoter would have 18 months from allotment to exercise the option to convert warrants.