Bajaj Finance and Piramal Finance report strong Q2 profit growth as credit demand surges

Strong Q2 profit growth across major non-banking lenders

India's retail credit expansion showed no signs of slowing down as premier non-banking financial companies posted sharp surges in second-quarter profitability, propelled by strong credit demand across urban and rural markets.

Bajaj Finance reported a 28.8 per cent year-on-year increase in net profit to Rs 6,367 crore for the quarter ending September 30, driven by a 23.6 per cent rise in net interest income to Rs 13,335 crore. Meanwhile, Piramal Finance posted a 67 per cent jump in quarterly net profit to Rs 545 crore, supported by a 35 per cent growth in net interest income to Rs 1,530 crore.

The earnings growth across leading lenders highlights healthy economic activity, steady household consumption, and improving balance sheet strength within the domestic financial ecosystem.

Bajaj Finance expands customer reach and credit volume

Bajaj Finance added 44.2 lakh new customers during the July–September period, taking its total customer franchise to 12.885 crore, a 16 per cent increase compared to the previous year. The company booked 1.345 crore new loans in the quarter, reflecting an 11 per cent expansion in loan volumes.

Assets Under Management (AUM) at Bajaj Finance grew 26 per cent year-on-year to reach Rs 5.85 lakh crore, with Rs 37,680 crore added to the loan book during the quarter alone. Total net income rose 23 per cent to Rs 15,974 crore, supported by lower funding costs, which eased by 9 basis points to 7.31 per cent.

Asset quality showed long-term improvement despite minor quarterly variations. Gross non-performing assets (NPA) stood at 1.06 per cent compared to 1.24 per cent in the same period last year, while net NPA was 0.42 per cent against 0.60 per cent a year ago.

Piramal Finance accelerates retail growth and AI integration

Piramal Finance saw its total AUM expand 24 per cent year-on-year to Rs 1.13 lakh crore, driven by a 30 per cent surge in its retail AUM to Rs 97,462 crore. Retail disbursements rose 34 per cent to Rs 14,646 crore for the quarter.

The company expanded its nationwide footprint to 838 branches across 621 cities in 25 states, serving 6.5 million customers. Piramal Finance also announced the appointment of former State Bank of India Chairman Dinesh Kumar Khara as an Independent Director for a five-year term starting October 19, 2026.

Outlook remains positive for domestic credit growth

Management guidance from both institutions reflects confidence in domestic economic stability and consumption trends. Bajaj Finance aims to book 6 crore to 6.2 crore new loans and add up to 2 crore customers during the full fiscal year, alongside expanding into 150 to 175 new locations.

Piramal Finance has strengthened its capital base through a Rs 3,850 crore capital raise, including a Qualified Institutions Placement of Rs 2,100 crore, positioning itself to support expanding retail credit across tier-2 and tier-3 markets.