India's Bajaj Finance jumps as easing credit costs, asset quality gains boost outlook (updated)

Bajaj Finance

30/04/2026 06:11

Adds details and background throughout

April 30 (Reuters) - Shares of India's Bajaj Finance BJFN.NS jumped as much as 5% on Thursday after analysts said the lender’s improving asset quality, easing credit costs and reaffirmation of its profit forecast point to a stable outlook despite earlier stress in small business lending.

The non‑bank lender's stock was the top gainer on Nifty Financial Services .NIFTYFIN, the heaviest sub-index, which was down 1.5%, while also topping the benchmark Nifty 50 .NSEI.

Analysts said tighter underwriting and improving asset quality have laid the groundwork for steadier and more durable growth, with CLSA noting that asset quality trends have been strengthening for the last two to three quarters.

The Bajaj group firm's reassertion of its long-term profit forecast of 23-24% indicated that growth is not expected to decline, according to CLSA analysts.

The forecast looks more achievable as the drag from captive two‑wheeler and three‑wheeler loans eases and newer segments ramp up despite slower micro, small and medium enterprises (MSME) growth, J.P. Morgan said.

Credit costs - provisions set aside for potential loan defaults - eased to 1.65% in the March quarter from 2.17% a year earlier and are expected to improve further to 1.45–1.60% this fiscal year.

 (Reporting by Urvi Dugar in Bengaluru; Editing by Sonia Cheema)

 ((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))