Bajaj Finance Q3 PAT declined 6% due to accelerated ECL provisions, one-time impact of labor laws

Bajaj Finance added 4.76 million new customers to its franchise in Q3 and expects to add 17-18 million new customers to its franchise in FY26 | Photo credit: istock

Rajeev Jain, MD and Vice Chairman at Bajaj Finance, said that to enhance the resilience of the NBFC’s balance sheet in a volatile global economic environment, the NBFC has amended its provisioning framework by introducing a minimum Loss Given Default (LGD) floor for all companies.

Accordingly, an accelerated provision for expected credit losses (ECL) of ₹1,406 crore was made in the loan default stages in the third quarter. Further, the NBFC has levied a one-time exceptional charge of ₹265 crore for an increase in gratuity liabilities arising out of past service costs due to the new labor laws. Excluding the accelerated provisions and one-time impact of new labor laws, the NBFC’s net profit rose 23 per cent year-on-year to ₹5,317 crore.

Core activity

Bajaj Finance’s total assets under management (AUM) rose 22 percent year-on-year to ₹4.84 lakh crore. It booked 13.9 million new loans in the third quarter, compared to 12.06 million in the same period last year. Further, the NBFC added 4.76 million new customers to its franchise in the third quarter and expects to add 17-18 million new customers to its franchise in FY26.

Net interest income (NII) rose 21 per cent year-on-year to ₹11,317 crore, while margins remained stable. The NBFC did not share the exact margin but said financing costs improved by 7 basis points (bps) from the previous quarter to 7.45 percent in the third quarter. Loan losses and provisions stood at ₹3,625 crore in the third quarter, higher than ₹2,043 crore in the same period last year.

The gross and net non-performing asset ratio (GNPA and NNPA) stood at 1.21 percent and 0.47 percent respectively at the end of December, compared to 1.12 percent and 0.48 percent last year. The NBFC expects credit costs to remain within a comfortable range, Jain said.

Published on February 3, 2026