Overview

• Major lenders reported double-digit profit gains in Q1 FY26, led by a 22% jump at Bajaj Finance, a 30% rise at Bajaj Finserv and REC’s highest-ever quarterly profit of Rs 4,451 crore.
• Sectorwide net interest income grew more than 20% year-on-year, driven by sustained loan book expansion despite compressed margins.
• Credit provisions spiked across the board—with Bajaj Finance’s provisions up 26% to Rs 2,120 crore—and gross NPAs at key NBFCs climbed above 2%.
• Investors expressed caution over asset quality, pushing Bajaj Finance shares down over 6% on July 25 after its NPAs rose.
• Bajaj Finance confirmed Vice Chairperson Rajeev Jain’s operational role through March 2028 and will submit a formal succession plan within six months.