Bajaj Finance Reports 23% Surge in Q4 Profit Driven by Strong NII and Lower Provisions
Bajaj Finance Q4 profit rises 23% on strong NII, lower provisions
Business StandardImage: Business Standard
Bajaj Finance's standalone profit after tax increased by 23% year-on-year to ₹4,840 crore in Q4 FY26, supported by a 20% rise in net interest income and reduced loan loss provisions. The company's assets under management also grew significantly, reaching ₹5.09 trillion.
- 01Standalone profit after tax rose 23% to ₹4,840 crore.
- 02Net interest income increased by 20% to ₹10,716 crore.
- 03Loan loss provisions decreased to ₹1,953 crore from ₹2,142 crore.
- 04Assets under management crossed ₹5 trillion, up 22% year-on-year.
- 05Rajiv Bajaj will step down from the Board, ceasing his role on July 30, 2026.
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Bajaj Finance, India's leading non-banking financial company, reported a 23% year-on-year increase in standalone profit after tax, reaching ₹4,840 crore for the fourth quarter of the financial year 2026-27 (Q4 FY26). This growth was bolstered by a 20% rise in net interest income (NII), which amounted to ₹10,716 crore, and a reduction in loan loss provisions to ₹1,953 crore from ₹2,142 crore in the same quarter last year. The company's total income also saw a 21% increase, totaling ₹12,944 crore. However, operating expenses rose in tandem, climbing 22% to ₹4,507 crore. Despite a slight uptick in gross non-performing assets (NPA) to 1.27%, net NPA improved to 0.52%. The company issued 51.95 million new loans during FY26, marking a 21% increase from the previous year. Additionally, Bajaj Finance's assets under management (AUM) grew 21% year-on-year to ₹3.73 trillion, with consolidated AUM surpassing the ₹5 trillion mark at ₹5.09 trillion. In a significant leadership change, Rajiv Bajaj will step down from the Board, effective July 30, 2026.
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The strong profit growth and increased lending activity signal a positive trend in consumer finance, which may lead to more accessible credit for individuals and businesses.
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