Bajaj Finance Ltd.Strong Growth with Proactive Provisioning

Bajaj Finance delivered robust Q3 FY26 performance with core AUM growing 22% year-on-year to ₹23,622 crores and core profit growth of 23%, maintaining a healthy ROE of 19.6%.

The company booked a record 14 million loans during the quarter and expanded its customer franchise to 115 million, on track to reach 120 million by FY26 end. In a strategic move to strengthen balance sheet resilience, management implemented permanent Loss Given Default floors, resulting in a one-time ₹1,406 crore ECL provision that significantly improved coverage ratios across all stages. Stage 1 PCR increased from 74 bps to 98 bps, Stage 2 from 30.1% to 37%, and Stage 3 from 52% to 61%.

Management provided encouraging FY27 guidance, projecting credit costs to improve to 165-175 bps from current 1.91%, driven by improving vintage performance and winding down of stressed portfolios. The company is strategically shifting from a 60-40 to 40-60 hunting-farming mix, emphasizing cross-sell to its vast customer base while deploying AI extensively across operations for enhanced productivity and cost efficiency.