Bajaj Housing Finance reported a stable Q2 FY26 with 24% AUM growth. Profit after tax increased by 18%, with an annualized ROA of 2.3%. Asset quality improved, with GNPA at 0.26% and NNPA at 0.12%. Operating efficiency also saw gains, with the Opex to NTI ratio at 19.6%. The company maintains a strong capital position with a PBC of 61.21%.
Q2 FY26 Performance Overview
Bajaj Housing Finance demonstrated robust performance in Q2 FY26, marked by significant growth and improved asset quality. Key highlights include:
- AUM Growth:24% increase
- Profit After Tax:18% rise
- Annualized ROA:2.3%
- GNPA:0.26%
- NNPA:0.12%
- Opex to NTI Ratio:19.6%
- PBC:61.21%
Scalability and Profitability
The company’s scalability is evident from its AUM, which reached ₹1,26,749 Cr, up from ₹1,13,059 Cr. Profitability metrics also improved, with PBT at ₹833 Cr and PAT at ₹643 Cr. The Opex to NTI ratio stood at 19.6%.
Asset Quality and Adequacy
Bajaj Housing Finance maintains strong asset quality and capital adequacy:
- GNPA:0.26%
- NNPA:0.12%
- Credit Cost:0.18% (Annualized)
- CRAR:26.12%
- PBC:61.21%
Key Financial Indicators
Several key financial indicators reflect Bajaj Housing Finance’s strong performance:
- AUM grew by ₹6,329 Cr in Q2 FY26.
- Disbursements increased by 32% YoY to ₹15,914 Cr.
- Net Interest Income (NTI) increased by 34% to ₹956 Cr.
- Net Total Income rose by 22% to ₹1,097 Cr.
Cost of Funds and Liquidity
- The Cost of Funds (COF) decreased by 34 bps sequentially.
- Liquidity buffer stood at ₹2,265 Cr.
- Liquidity Coverage Ratio (LCR) was 176%.
Loan Losses and Provisions
The company’s loan loss to average loan assets stood at 0.18% (annualized). Stage 2 assets amounted to ₹391 Cr, and the Stage 3 PCR stood at 55.6% as of September 30, 2025.
Strategic Sourcing and Structure
Omnichannel sourcing strategy effectively combines retail and commercial channels, enabled by domain expertise and partnerships. The company’s internal structure is aligned with customer segments, featuring dedicated teams for Prime, Non-Prime, and Commercial (LRD and DF) customers.
Financial Outlook for FY26
- AUM Growth is expected to be in the range of 21-23%.
- Opex to NTI is projected at 20-21%.
- GNPA is anticipated to be between 35-40 bps.
- Credit Cost is estimated at 15-20 bps.
Source: BSE
