Bajaj Finance Gold Loan Book Doubles to Rs 24,000 Crore as It Ends Short-Tenor Schemes

Bajaj Finance's gold-loan book doubled to more than Rs 24,000 crore in the September quarter, accounting for 4.1% of its balance sheet, and the lender stopped short-tenor schemes that required branch visits every three months. NDTV Profit reported the figures from the company's Q2 FY27 earnings call.

Bajaj Finance's Gold Loan Book and Branch Push

The portfolio stood at Rs 11,789 crore a year earlier. Bajaj Finance added 321 gold-loan branches in the September quarter, taking its network to 2,022, and expects to end FY27 with between 2,700 and 2,800 branches.

Stage 2 gold-loan assets rose by Rs 1,047 crore during the quarter to about Rs 1,100 crore. These are loans where credit risk has increased significantly but which have not yet been classified as non-performing. Sandeep Jain, chief operating officer and chief financial officer at Bajaj Finance, attributed the increase to short-term schemes that required customers to return to a branch every three months.

"For a customer to come every three months to the branch for making full payment/payment of interest, coming for rollover becomes very cumbersome," Jain said during the company's Q2 FY27 earnings call. "Accidentally, customer gets into delinquency."

Jain said customers who became delinquent had to pay the outstanding principal and interest to regularise their accounts. Bajaj Finance stopped offering the short-tenor schemes in August. It is moving towards loans with a tenure of about 12 months, while giving customers the option to pay interest monthly or quarterly.

Rajeev Jain, vice-chairman and managing director of Bajaj Finance, said the company wanted to avoid customers falling into delinquency because of the structure of the loan. The company said around Rs 550 crore of the affected gold-loan assets had moved back to Stage 1. Management described the rise in Stage 2 assets as temporary and said it did not expect the issue to affect credit costs or gold auctions.

Earlier Bajaj Finance Moves This Quarter

Bajaj Finserv's board approved subscribing to convertible warrants of Bajaj Finance for up to ₹5,800 crore, complementing a ₹11,700 crore QIP, with a total proposed raise of ₹17,500 crore, ScanX reported on October 1, 2026. Bajaj Finance raised fixed deposit rates by 15-40 basis points across tenures effective October 7, 2026, following the RBI's 25-bps repo rate hike, Business Standard reported. Bajaj Finance's profit increased 29% to Rs 6,367 crore, Financial Express reported on October 20, 2026.

Bajaj Finance's Next Steps

Bajaj Finance will introduce new term loan variants from November 1, 2026, responding to the RBI's draft proposal banning revolving credit facilities by NBFCs, Moneycontrol.com reported on October 19, 2026. The company targets 2,700 to 2,800 gold-loan branches by the end of FY27.