Bajaj Finance Ltd (BFL) is a non-banking financial company (NBFC) in India. It is part of the Bajaj Finserv group.
It’s a deposit-taking NBFC (NBFC-D) and is classified as NBFC-Investment & Credit Company (NBFC-ICC) by RBI.
The company offers a diversified range of lending & financial services: consumer loans, SME/SME financing, mortgages, auto finance, rural lending, loans against securities, gold and other secured / unsecured products.
Products & Services:
Consumer credit (EMIs, retail purchases)
Personal loans, home loans, gold loans, auto loans etc.
SME / Micro loans and other commercial lending.
Accepts deposits from public & corporates.
Scale and Reach:
As of FY 2024, it had ~83.64 million customers.
Large portfolio / asset base: its Assets Under Management (AUM) was ~ ₹330,615 crore as of year end FY24.
Strategic Focus:
Strong adoption of technology and data-driven approaches.
Expanding its product lines: multiple variants in its product catalog to serve urban/rural, different income levels.
Some recent numbers:
Q1 FY26 (quarter ending June 2025):
Net profit rose ~22% YoY to ~ ₹4,765 crore.
Net Interest Income (NII) up ~22%.
Assets under management grew ~25% YoY to ~ ₹4,41,450 crore (from ~₹3,54,192 crore a year earlier).
Number of new loans booked ~135 million (1.35 crore) in that quarter, up ~23% YoY.
Asset Quality:
Gross Non-Performing Assets (NPA) ~1.03%, Net NPA ~0.50% in Q1FY26. Slightly higher than earlier, indicating some stress but still relatively moderate.
Costs / Efficiency: The operating expenses to net income ratio has been holding steady/slightly improving.
Diversification: Across products (consumer, SME, mortgages etc.), across geographies (urban + rural) which helps in risk mitigation.
Tech/Data-led: They invest in tech & data, which helps in underwriting, customer acquisition, risk management.
Strong growth momentum: The numbers show consistent growth in loans disbursed, customer base, AUM etc.
Reputation & credit rating: Generally good credibility among NBFCs.
Asset Quality pressures: While NPAs are still low by many standards, any slowdown or defaults in certain segments could increase risk.
Regulatory risk: As an NBFC unit taking deposits, it is subject to RBI regulations; changes in regulatory norms (esp. around credit, interest rates, NBFC funding) can have non-trivial impacts.
Competition: From banks, fintech lenders, other NBFCs. Also, interest rate environment matters, cost of funds etc.
Cost of Funds / Margins: Rising funding costs or liquidity crunches can squeeze margins.
The company aims to grow its customer franchise substantially (they have set ambitious targets for number of customers).
Improve cross-selling: offering multiple financial products to same customers (like payments, insurance, deposits etc.).
Maintain a healthy return on equity over cycles (~21-23% is what they aim for) with prudent risk management.