India's Bajaj Finance posts quarterly profit rise on strong loan growth (updated)

Bajaj Finance

10/11/2025 11:59

Adds AUM forecast cut in paragraphs 1-3

By Nishit Navin

Nov 10 (Reuters) -
India's Bajaj Finance BJFN.NS on Monday trimmed its growth forecast for asset under management (AUM) for the 2025–26 financial year, citing rising bad loans in its micro, small and medium enterprises (MSME) segment and strong competition in the mortgage lending business.

The non-banking finance company now expects consolidated AUM to grow 22–23% in the current fiscal year, down from an earlier estimate of 24–25%, after posting 26% growth a year earlier.

"The company has taken a prudent and balanced stand on the AUM growth guidance," Vice Chairman and Managing Director Rajeev Jain said.

The revision reflects risk actions taken in MSME lending and a cut in forecast by its housing finance unit, Jain added.

"Credit cost remained elevated in captive two- and three-wheeler and MSME businesses," the company said, adding that it had reduced unsecured MSME loan volumes by 25%.

It now expects AUM from MSME lending to grow 10–12% in FY26, compared with 18% growth as of end-September from a year earlier.

In July, Bajaj Housing Finance, its mortgage-lending arm, also forecast slower growth, projecting AUM to rise 21–23% in FY25 versus 26% last year, as competition and muted demand weigh on expansion.

Earlier on Monday, Bajaj Finance reported a 22% rise in quarterly net profit to 48.76 billion rupees for the three months ended September 30, driven by strong loan growth even as asset quality weakened.

AUM grew 24% year-on-year, while new loan bookings increased 26%. Net interest income rose 22% to 107.85 billion rupees. The lender's gross non-performing asset ratio climbed to 1.24% from 1.03% in the previous quarter.

Separately, the company said it had elevated Manish Jain to the role of deputy CEO.

($1 = 87.8950 Indian rupees)

 (Reporting by Nishit Navin; Editing by Ronojoy Mazumdar and Anil D'Silva)

 ((Nishit.Navin@thomsonreuters.com;))