Highlights
- Bajaj Finance (NSE:BAJFINANCE) reported a 24 per cent year-on-year rise in assets under management to about Rs 5,46,900 crore as of June 30, 2026.
- New loans booked grew 20 per cent to 16.13 million in Q1 FY27, while the customer franchise expanded to 124.43 million.
- Bajaj Housing Finance (NSE:BAJAJHFL) posted a 24 per cent rise in AUM to Rs 1,49,610 crore, with gross disbursements of about Rs 19,500 crore during the quarter.
- Bajaj Finance has guided for AUM growth of 22-24 per cent for FY27, while Rajiv Bajaj is set to step down as non-executive director at the July 30 annual general meeting.
Bajaj Finance (NSE:BAJFINANCE) has drawn attention with its June-quarter business update, which showed the non-banking financial company sustaining a growth pace that continues to outstrip the broader banking system's credit expansion. For a lender that has grown to become one of the largest consumer and SME financing platforms in the country, maintaining momentum at this scale carries significance for how the NBFC sector as a whole is being assessed this year.
The update comes alongside developments at group entity Bajaj Housing Finance (NSE:BAJAJHFL) and a board-level change at the parent company, adding several layers to the quarter's narrative for the Bajaj group's financial services businesses.
Why Investors Are Watching
Bajaj Finance reported that its assets under management rose 24 per cent year-on-year to approximately Rs 5,46,900 crore as of June 30, 2026. New loans booked during the quarter grew 20 per cent to 16.13 million, while the company's customer franchise expanded to 124.43 million. The deposits book stood at about Rs 68,500 crore as of the same date.
Group company Bajaj Housing Finance separately reported a 24 per cent year-on-year increase in AUM to Rs 1,49,610 crore, with gross disbursements of roughly Rs 19,500 crore for the quarter, up from about Rs 17,506 crore in the same quarter a year earlier. Bajaj Finance has guided for AUM growth of between 22 and 24 per cent for FY27, signalling management's expectation of continued, if moderating, expansion through the year.
Market Context
The update comes at a time when broader financial markets have been steady, with the Sensex and Nifty holding firm and the Nifty Bank index trading above the 58,000 mark in recent sessions. Within this backdrop, NBFC counters such as Bajaj Finance have been viewed as a proxy for consumer lending demand, distinct from the deposit-funded banking model.
Separately, Bajaj Finance disclosed that Rajiv Bajaj will step down as non-executive director with effect from the company's annual general meeting scheduled for July 30, 2026. Bajaj Housing Finance has also scheduled its 18th annual general meeting for July 29, 2026, where shareholders will be asked to approve, among other items, related-party transactions with Bajaj Finance worth Rs 18,152 crore and a proposal for issuing non-convertible debentures via private placement.
What Market Participants Will Monitor
Market participants are likely to track the pace of AUM growth relative to the company's own 22-24 per cent guidance for FY27, along with asset quality trends given the high base built up over recent years. Net interest margins, borrowing costs and the trajectory of the deposits franchise, which crossed Rs 68,500 crore, will also be watched as indicators of funding cost management.
At Bajaj Housing Finance, disbursement trends, the mix between home loans and other secured lending products, and shareholder approval of the related-party transactions at the upcoming AGM will be in focus. Governance continuity following Rajiv Bajaj's exit from the Bajaj Finance board will also draw scrutiny as the AGM date approaches.
Industry or Peer Perspective
Bajaj Finance's 24 per cent AUM growth compares with system-wide bank credit growth that has typically run in the 12-15 per cent range, underscoring the NBFC sector's continued ability to capture a disproportionate share of consumer and retail credit demand. Within the group, Bajaj Housing Finance's growth trajectory mirrors the parent's momentum, particularly in the secured housing finance segment.
The performance sits alongside a broader financial sector backdrop where private banks such as HDFC Bank (NSE:HDFCBANK) and ICICI Bank (NSE:ICICIBANK) have also reported double-digit advances growth for the June quarter, suggesting credit demand has held up across both banking and non-banking lending channels even as funding costs remain a shared point of focus across the industry.
Conclusion
Bajaj Finance's Q1 FY27 update, along with the accompanying numbers from Bajaj Housing Finance, points to continued strength in the group's lending franchise even as growth rates moderate from previous peaks. With an AGM, a board-level exit and related-party approvals all due later this month, the group's financial services arm remains a name market participants will continue to track closely. This article does not constitute investment advice.
FAQs
Q: Why is the company in focus today?
A: Bajaj Finance is in focus after reporting a 24 per cent year-on-year rise in assets under management to about Rs 5,46,900 crore for Q1 FY27, alongside similar growth at group company Bajaj Housing Finance and an upcoming board-level change.
Q: What factors are investors monitoring?
A: Investors are tracking AUM growth against the company's 22-24 per cent FY27 guidance, asset quality trends, the deposits book, and outcomes from the Bajaj Finance and Bajaj Housing Finance annual general meetings scheduled for late July 2026.
Q: Which peer companies are relevant?
A: Bajaj Housing Finance (NSE:BAJAJHFL) is the most directly relevant peer as a group entity, while private banks such as HDFC Bank (NSE:HDFCBANK) and ICICI Bank (NSE:ICICIBANK) offer a broader comparison point for credit growth trends this quarter.
Q: Is this article investment advice?
A: No. This article is intended solely for informational purposes and should not be considered investment, financial or trading advice.