Bajaj Finserv Q1 profit rises 12% to ₹3,132 crore as board approves reinsurance entry
The Indian non-banking financial company posted double-digit profit growth and stronger asset quality while seeking regulatory approval to expand into the reinsurance sector, signaling confidence in its diversified financial model.
Bajaj Finserv reported a 12 percent year-on-year increase in consolidated net profit to 3,132 crore rupees for the quarter ended June 2026. The non-banking financial company also saw revenue from operations climb 19 percent to 42,037 crore rupees, driven by an 18 percent jump in interest income to 22,362 crore rupees.
In a strategic expansion move, the company’s board approved plans to enter the reinsurance business through a newly formed subsidiary. This initiative remains subject to clearance from the Insurance Regulatory and Development Authority of India and other relevant regulatory bodies.
For investors, the results underscore the resilience of the lender’s core book amid broader economic fluctuations. Asset quality metrics tightened during the period, with the gross non-performing asset ratio improving to 0.96 percent from 1.03 percent a year earlier, while the net non-performing asset ratio fell to 0.39 percent.
The group maintains a robust capital buffer, reporting a capital adequacy ratio of 20.9 percent, including a Tier-I ratio of 20.01 percent. This strong capitalization has supported aggressive lending, with Bajaj Finance adding 5.1 million customers and disbursing 16.13 million new loans in the quarter.
Assets under management across key subsidiaries reflected this momentum. Bajaj Finance saw its AUM expand 24 percent year-on-year to 5.47 lakh crore rupees, while Bajaj Housing Finance posted a similar 24 percent increase to 1.50 lakh crore rupees.
The insurance and asset management arms also delivered solid top-line growth. Bajaj General Insurance recorded an 11 percent rise in gross written premium to 5,789 crore rupees, and Bajaj Allianz Life achieved an 87 percent surge in the value of new business despite the temporary unavailability of GST credits.
The company continues to absorb short-term costs to scale emerging verticals, including health, direct, and alternate investment management, which collectively posted a 130 crore rupee loss in line with stated growth plans. Additionally, the board authorized the issuance of 15.11 lakh equity shares to the Bajaj Finserv ESOP Trust to align employee incentives with long-term performance.
