Bajaj Finance aims for a sevenfold increase in its assets under management, projecting a total of ₹40 lakh crore by 2036. The lender plans to maintain 23-25% annual growth, supported by aggressive AI adoption and deeper penetration into India's credit ecosystem. Investors are looking at how the company balances this rapid scaling with risk management and capital requirements.
Bajaj Finance Ltd. (BFL) has announced a long-term growth roadmap, setting a goal to reach an assets under management (AUM) figure of ₹40 lakh crore by 2036. This target would mark a sevenfold increase from the ₹5.47 lakh crore AUM reported by the end of June 2026. To achieve this, the company is targeting a compounded annual growth rate of 23-25% over the next decade, with the objective of capturing a 5% share of India's total credit market.
Financial Targets and Growth Strategy
For the current fiscal year 2027, the company expects its consolidated AUM to reach between ₹6.3 lakh crore and ₹6.5 lakh crore. Managing Director Rajiv Jain indicated that the firm aims to maintain its current return on assets and return on equity metrics, even as it expands its loan book. The company has also set a growth target for its profits at 23-24% annually. A key area of concern for investors in high-growth NBFCs is the quality of the loan book. BFL has stated it expects its gross non-performing assets, which represent the portion of loans that are not being repaid as scheduled, to remain below 1.4% during this growth phase.
Scaling Through Digital Innovation
To manage this expansion without a proportional increase in operational costs, Bajaj Finance is heavily investing in technology. The company plans to deploy over 300 artificial intelligence use cases in FY27. These include voice and text bots for customer service, facial recognition for branch operations, and automated systems for assessing property documents and gold ornaments. By automating these tasks, the company hopes to maintain its profit margins while scaling its operations to reach a broader base of small businesses, farmers, and new entrepreneurs.
The Credit Market Landscape
Bajaj Finance’s growth targets are built on the expectation that India’s domestic credit market will continue to expand. Even at a conservative 12% growth rate, India’s domestic credit is projected to hit ₹729 lakh crore by 2036. As one of the country's largest non-banking lenders, BFL relies on the consistent performance of its diverse product segments, including consumer lending and MSME finance. The company’s ability to execute this plan will depend on its access to funds and its ability to manage credit risks in an increasingly competitive lending environment. Investors should monitor the company's asset quality metrics, cost of borrowing, and progress on these AI-driven efficiency initiatives in upcoming quarterly results.