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Bajaj Finance Q1FY27 profit rises as NIM and credit costs improve
Standalone annualized NIM rose 18 bps to 12.04%, while provisions for bad loans edged up 2% year-on-year to ₹1,977 crore.
LiveMint reports that Bajaj Finance’s standalone June-quarter (Q1FY27) results beat investor expectations, with annualized standalone net interest margin rising 18 basis points year-on-year to 12.04%. The improvement supported net interest income growth of 24% year-on-year to ₹11,495 crore, outpacing the 22% rise in average assets under finance.
The lender highlighted continued loan momentum across segments, with urban personal loans up 19% and rural personal loans up 27%. Gold loans more than doubled on a smaller base, reaching ₹21,200 crore, and management also noted that the standalone numbers better reflect higher-yielding businesses such as consumer, MSME, personal and gold lending.
Credit costs stayed contained, with provisions for bad loans increasing only 2% year-on-year to ₹1,977 crore despite 22% average asset growth. Management said ongoing credit discipline helped keep bad debts low, and that credit cost excluding an extra prudent provision of ₹296 crore was 1.3%, the lowest since the covid-19 period.
As a result of the combination of higher NIM and contained credit costs, return on equity rose 180 bps year-on-year to 20.2%, and profit before tax increased 29% to ₹7,163 crore. LiveMint added that the stock rose more than 6% in early Friday trade to a record high of ₹1,124.60.
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