Bajaj Finance Q2 FY26 — Growth Momentum Intact

Bajaj Finance reported a strong Q2 update, highlighting consistent growth in its lending and deposit business. Key Highlights: AUM Growth: Assets Under Management rose 24% YoY to ~₹4.62 lakh crore as of Sept 30, 2025. Deposits: Deposit book grew 5%+, strengthening its funding base and reducing reliance on borrowings. Customer Franchise: Expanded to 110.6 million customers, with new loan bookings rising 26% YoY. Diversification: Continued expansion across consumer, SME, and commercial lending. Why It Matters: Rapid AUM growth reflects strong demand for Bajaj’s lending products. Growing deposits improve cost of funds and balance sheet stability. Expanding customer base strengthens its position as India’s top NBFC. Risks to Watch: Asset Quality: Faster growth in consumer and unsecured loans could bring higher NPAs. Funding Costs: Rising interest rates may pressure margins despite deposit growth. Competition: Banks and fintechs are aggressively expanding in the same segments. Outlook: If Bajaj Finance sustains this balance of loan growth and deposit franchise, it could deliver stronger profitability in coming quarters. Investors should watch for Q2 results on NIM, credit costs, and product mix to gauge sustainability.