Bajaj Finance Hits ₹510,000 Crore AUM Milestone

Bajaj Finance has reached a significant financial milestone, with its consolidated Assets Under Management (AUM) surpassing ₹5 lakh crore to approximately ₹510,000 crore as of March 2026. This represents a robust 22% increase year-on-year. The company also booked 12.89 million new loans in the fourth quarter of fiscal year 2026, further solidifying its market presence. Its customer franchise expanded to 119.33 million.

Deposit Book Declines Year-on-Year

However, Bajaj Finance's total deposits, a key funding source, saw a year-on-year decrease. Deposits stood at approximately ₹68,550 crore as of March 2026, down from ₹71,403 crore in the prior year.

Why This Matters: Growth and Funding Dynamics

Crossing the ₹5 lakh crore AUM mark underscores Bajaj Finance's successful growth strategy and expanding market reach. The strong AUM and customer base expansion highlight the company's ability to capitalize on India's increasing credit demand. The year-on-year dip in deposits, while modest, warrants attention. It could signal a shift in the company's funding mix or increased competition for retail deposits. Investors will be watching the strategy for managing the liability side closely.

Company Background and Growth Trajectory

Bajaj Finance, a key entity within the Bajaj Group, has transformed from a niche financier for vehicles into a diversified financial services provider. The company's strategy has consistently focused on technology for product innovation and reaching a wide customer base across urban and rural India. Analyst projections anticipate an AUM compound annual growth rate (CAGR) of around 25% between FY25 and FY27, reflecting its ambitious growth trajectory.

Implications of the Results

This milestone enhances Bajaj Finance's position as a leading Non-Banking Financial Company (NBFC) in India. The growth in its customer franchise points to continued success in customer acquisition and retention. However, the year-on-year decline in deposits is expected to bring increased scrutiny to the company's funding strategies and cost of funds. The robust booking of new loans also indicates strong demand and effective execution capabilities.

Data Provisional Nature

It is important to note that the reported financial figures are provisional and subject to review by statutory auditors. Future adjustments could potentially alter the reported AUM and deposit numbers.

Industry Context and Competitors

Bajaj Finance's AUM achievement occurs within a broader context of strong growth across the NBFC and banking sectors. For comparison, Shriram Finance reported an AUM of ₹2.91 lakh crore as of December 2025. Cholamandalam Investment and Finance Company had an AUM of ₹2.07 lakh crore as of June 2025. HDFC Bank, a significant competitor in multiple lending areas, reported gross advances of ₹27.69 lakh crore as of September 2025.

Historical Growth Trends

Historically, Bajaj Finance's consolidated AUM has grown at a compound annual growth rate (CAGR) of approximately 21% between FY23 and FY26. In comparison, its consolidated deposits have grown at a CAGR of approximately 8% over the same period.

Key Areas to Monitor

Investors will be closely watching the finalization of these provisional figures by statutory auditors. Management commentary on strategies for deposit mobilization and growth will be crucial. Further monitoring of asset quality trends amidst ongoing expansion is also expected. The evolution of funding costs, influenced by deposit trends and market liquidity, will be a key indicator. Finally, sustained momentum in new loan bookings and progress in expanding into new business segments will be areas to track.