Bajaj Finserv Q1 profit rises 12% to ₹3,132 crore; board backs reinsurance entry
Bajaj Finserv reported a 12.3% year-on-year rise in June-quarter consolidated profit as income and lending assets expanded. Its board approved pursuing a reinsurance subsidiary, subject to IRDAI approval, while Bajaj Finance added 5.1 million customers.
What happened
Bajaj FinServ · Bajaj Finserv’s June-quarter profit rose 12.3% to Rs 3,132 crore as income and lending AUM expanded. Its board approved pursuing a reinsurance
Key facts
- Consolidated net profit: Rs 3,132 crore, up 12.3% YoY from Rs 2,789 crore
- Total income: Rs 42,037 crore, up 19.1% YoY from Rs 35,300 crore
- Bajaj Finance added 5.1 million customers
- Bajaj Finance booked 16.13 million new loans
- Consolidated AUM: Rs 5.47 lakh crore, up 24% YoY
- Bajaj Housing Finance AUM: Rs 1.50 lakh crore, up 24% YoY
- Gross NPA: 0.96% versus 1.03%
- Net NPA: 0.39% versus 0.50%
- Capital adequacy ratio: 20.9%; Tier-I: 20.01%
- 15.11 lakh equity shares approved for ESOP Trust
- Life insurance value of new business up 87%
- Asset management average quarterly AUM: Rs 33,027 crore
Why this matters
Board approval to pursue an IRDAI-regulated reinsurance subsidiary marks a strategic move to broaden Bajaj Finserv’s insurance value chain and diversify its financial-services platform.
What to watch
- IRDAI approval timeline, required capital and permitted scope for the reinsurance business.
- Quarterly AUM growth, customer additions, loan mix and disbursement momentum at Bajaj Finance.
- Net interest margin, cost of funds, deposit growth and liquidity indicators.
- Gross and net NPA trends, credit costs and management commentary on unsecured lending.
- Insurance premium growth, combined ratio, solvency and cross-sell metrics.
- File the reinsurance-subsidiary proposal with IRDAI and disclose capital, governance and business-scope details.
- Use the enlarged Bajaj Finance customer base to increase insurance attachment, renewals and digital servicing.
- Prioritize portfolio mix, collections and provisioning discipline as AUM growth remains elevated.
- Expand funding diversification through deposits, bank lines and market borrowings to protect net interest margins.