Bajaj Finance Q4 Profit Rises 22% as AI Push and Asset Quality Improve

Bajaj Finance reported a 22% year-on-year rise in net profit, driven by stronger lending growth and improved asset quality. The non-bank lender also saw credit costs ease and gross non-performing assets decline to 1.01% from 1.21% in the previous quarter, reflecting better loan performance and tighter underwriting standards.

The company maintained its long-term profit growth guidance of 23–24% but slightly lowered its assets under management (AUM) growth outlook to 23–25% from 25–27%. It expects MSME lending to recover in the second half of the year, while segments like gold loans and commercial vehicle financing are likely to support overall growth. Credit costs are projected to stay in the 1.45–1.60% range for the current fiscal year.

Bajaj Finance also announced a major push into artificial intelligence, setting up a dedicated AI unit and expanding it to around 360 employees by June. The company is already using AI for customer interactions and data processing at scale. In a separate development, Rajiv Bajaj will step down from the company’s board after its July AGM, ending his long association with the lender.

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