Bajaj Finance reported a 27.4% jump in net profit to ₹5,986 crore for the quarter ending June 2026, driven by a 24% expansion in its total loan book. The non-banking lender also saw improvements in asset quality, with gross bad loans falling to 0.96%. Investors are tracking the company's aggressive integration of artificial intelligence across its customer acquisition and loan collection processes.
Bajaj Finance Limited has reported a strong performance for the first quarter of the 2026-27 financial year. The company recorded a net profit of ₹5,986 crore, a 27.4% increase compared to the same period last year. This growth was supported by steady business operations and a healthy expansion in the company's overall loan portfolio.
Loan Book Expansion and Earnings
The company's net interest income, which is the difference between interest earned on loans and interest paid on deposits, grew by 23% to reach ₹12,571 crore. Total assets under management, representing the value of all loans managed by the firm, stood at ₹5.47 lakh crore, marking a 24% year-on-year increase. During the three months ending June 30, 2026, the company added over ₹36,900 crore to its loan book and successfully disbursed more than 16 million new loans, expanding its total customer base to 124.43 million.
Asset Quality and Provisions
A critical area for non-banking financial companies is the quality of their loan portfolio, specifically the level of non-performing assets or bad loans. Bajaj Finance showed improvement in this metric, with gross non-performing assets dropping to 0.96% from 1.03% in the same quarter last year. Net non-performing assets also improved, falling to 0.39% from 0.50% previously. The company maintained a prudent approach by setting aside ₹1,993 crore for potential loan losses and provisions, which includes a specific buffer of ₹296 crore for general macroeconomic risks. Excluding this additional buffer, the company noted that underlying loan losses decreased by 14% compared to the previous year.
AI Transformation and Operational Strategy
Beyond financial results, the company is focusing heavily on the 'FINAI' program, an initiative aimed at integrating artificial intelligence into its core business functions. This includes using AI for customer identification, credit underwriting, and loan collection services. The firm currently plans to scale its specialized AI team to 400 employees during the current financial year. Management has indicated that AI-driven loan offers have increased fourfold over the past year, with automated digital bots facilitating over ₹2,500 crore in loan disbursements this quarter.
For the remainder of the 2026-27 financial year, the company has set internal targets to acquire between 18 million and 20 million new customers. Investors will likely monitor how effectively this shift toward AI-led operations impacts long-term profit margins and whether the company can maintain its current trend of declining bad loans while aggressively growing its gold loan franchise and physical branch network.