Highest-ROE scaled lender
Bajaj Finance is engaged in the business of lending, partnership and services, payments and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs (Small and Medium sized Enterprises), and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. The company is transforming itself into a customer-centric, digital-first enterprise through omnipresence across physical, mobile, and web mediums, led by payments platform.
Bajaj Finance Limited operates as a deposit-taking non-banking financial company in India. The company offers financing for various products, such as consumer electronics, furniture, digital products, lifestyle products, lifecare services, e-commerce purchases, retail spends, and two and three-wheelers; and personal, unsecured, home, secured, gold, and car loans. It also provides secured and unsecured loans to micro, small, and medium enterprises; loans against property, mutual funds, insurance policies, and shares; developer finance and lease rental discounting services; commercial vehicle financing; and new and used car financing, and tractor financing. In addition, the company offers commercial and rural lending; public and corporate deposits; loans against securities; micro-finance and auto financing lending; proprietary trading, ESOP financing, and broking and margin trade financing services. Further, it distributes life, health, and general insurance products. The company was formerly known as Bajaj Auto Finance Limited and changed its name to Bajaj Finance Limited in September 2010. The company was incorporated in 1987 and is based in Pune, India. Bajaj Finance Limited is a subsidiary of Bajaj Finserv Ltd.
Key people: Mr. Rajeev A. Jain (MD & Executive Vice Chairman) · Mr. Sandeep Vijay Kumar Jain (CFO & COO) · Mr. Ramachandran Vijay (Company Secretary & Compliance Officer) · Mr. Deepak Bagati (Chief Operating Officer) · Mr. Anurag Chottani (CTO & COO) · Mr. Prashant Verma (Chief Information & Security Officer)
Bajaj Finance major competitors are Bajaj Finserv, Shriram Finance, JIO Financial Serv., Chola Invest & Fin., Muthoot Finance, Power Finance Corpn., Indian Railway Fin.. Market Cap of Bajaj Finance is ₹6,37,818 Crs. While the median market cap of its peers are ₹1,51,738 Crs.
Bajaj Finance seems to be financially stable compared to its competitors.The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026
Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.
As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.
India's largest private-sector NBFC, lending to retail, SME and commercial customers across urban and rural India with a consolidated AUM of Rs 5.47 lakh crore (Jun-2026, +24% YoY) and 16.1 million new loans booked in Q1FY27 alone. It owns 86.7% of Bajaj Housing Finance (AUM Rs 1.50 lakh crore) after selling 2% in Dec-2025, and books around 18-20 million new customers a year. Its consumer-durable/EMI-card franchise, cross-sell ecosystem and 9.6% NIM give it best-in-class ROA (FY27 guidance 4.3-4.7%) among large Indian lenders.
Trades at 32x TTM PE and 5.8x P/B (screener, 8-Sep-2026) versus a 10-year profit CAGR of 31%; screener flags the 5.8x book multiple as rich. Five-year average multiple not sourced. EV/EBITDA n.m.; dividend yield 0.5%.
| Cholamandalam Investment & Finance | Chola (27x PE, 5.2x P/B, ROE 19.4%, Q1FY27 PAT +46%) is similarly priced but is a vehicle-finance-heavy lender with a smaller cross-sell franchise; Bajaj offers larger scale (AUM 5.5 lakh cr), higher ROA (4.3-4.7% guidance) and a diversified 20+ product engine at a comparable 32x/5.8x. |
| Shriram Finance | Shriram is cheaper (21.6x PE, 3.0x P/B, ROE 16.4%) but is a CV/used-vehicle lender with structurally higher credit costs and lower ROA; Bajaj's premium is paid for 9.6% NIM, sub-1% GNPA and 30%+ ten-year profit CAGR. |
| HDB Financial Services | HDB (26x PE, ROE 14.7%, stock -11% over 1 year post-IPO) has lower ROE, a thinner NIM and no comparable consumer-durable/EMI ecosystem; Bajaj's 20%+ ROE and 24% AUM growth justify its higher multiple. |
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
NBFCs — 7.3%: the two franchises whose ROE justifies a premium to banks
NBFC credit is growing 15–17% against 10–12% for banks over FY26, AUM has doubled from ₹24 lakh crore in 2021 to ₹48 lakh crore and is heading for ₹70 lakh crore by FY27. Two things changed in the last eighteen months. The regulatory cycle turned: the RBI reversed the November 2023 risk-weight increase on bank lending to NBFCs, revised the co-lending framework and cut the repo rate 125 bp — so funding costs, which are the NBFC's raw material, are falling while deposit growth of 15% means banks have money to lend them (bank loans will be 44–45% of NBFC borrowings in FY27). And foreign strategic capital arrived: MUFG's ~$4.4 bn for 20% of Shriram Finance is one of the largest FDI deals in Indian financials and a marker of what a scaled, well-run lender is worth to a global bank. The valuation argument is the one the house makes about banks in reverse: a bank earning 16–17% ROE cannot compound faster than that without dilution, which is why 4–5x book is unsustainable for HDFC Bank or Kotak — but an NBFC that generates 20–30% ROE can carry it. That is why Bajaj Finance at 5.8x book is a Core holding and Kotak at 2x book is not.
Cholamandalam is an excellent vehicle financier but at 4x+ book already prices its growth, and its ROE (18–20%) is on a more bank-like, lower-yield book; M&M Financial has a decade of volatile credit costs; Sundaram Finance is conservative to the point of not growing. HDB Financial lists at a premium to its own economics on the HDFC halo. We hold no gold-loan or microfinance NBFC in the PMS (Manappuram appears only in the AIFs): the gold-loan regulatory reset and the FY25–26 microfinance stress cycle are exposures we would rather take through IDFC First and Shriram's diversified book.