Bajaj Finance Ltd. has approved the allotment of secured, redeemable non-convertible debentures (NCDs) aggregating to ₹498.22 crore on a private placement basis. According to a regulatory filing by the top deposit-taking non-banking financial company (NBFC) to the National Stock Exchange of India (NSE) on August 18, 2026, the company's 'Debenture Allotment Committee' approved the issuance at its meeting held between 12:05 PM to 12:25 PM. The NCDs consist of 50,000 secured NCDs with a face value of ₹1 lakh each, including discount and accrued interest. As per multiple reports, this issuance reflects Bajaj Finance's continued reliance on long-term debt markets to fund its asset growth, with the company locking in funding at a 7.79% cost for the medium term.
The NCDs carry a fixed coupon rate of 7.79% per annum and will be listed in the Wholesale Debt Market (WDM) segment of BSE Ltd. Interest payments are scheduled annually, with the first payment due on July 6, 2027, and subsequent payments following each year until maturity. The principal amount will be redeemed upon maturity on July 4, 2036. The debentures and interest thereon will be secured by a first pari-passu charge on the company's book debts and loan receivables, with security cover not less than 1.00 time the aggregate outstanding value of the debentures issued. There were no delays in payment of interest or principal amounts reported for this instrument, and no special rights or privileges were attached to the issuance.
This latest NCD issuance follows Bajaj Finance's earlier approval of ₹5,307 crore worth of NCDs on July 6, 2026. The company has maintained an active debt market presence with regular NCD issuances to support its funding requirements and maintain its position as a leading deposit-taking NBFC in the Indian financial sector. With a residual tenure of nearly ten years (3,608 days), the issuance aligns with the NBFC's strategy to maintain stable funding sources while managing interest rate risks over extended periods.
Bajaj Finance reported strong financial performance in the first quarter of FY27, with consolidated profit rising 27.4% year-on-year to ₹5,986 crore in the April-June quarter, compared to an estimate of ₹4,700 crore. Net interest income also jumped 23% to ₹12,571 crore, against ₹10,288 crore posted in the first quarter of fiscal 2027. Asset quality showed improvement, with the share of gross non-performing loans falling to 0.96% from 1.03% in the previous quarter, while net NPA came in at 0.39% versus 0.41% in the March quarter.
