Bajaj Finance share price rose around 3% on September 23, 2026, making it the top gainer on the Nifty 50 during the session. The immediate trigger was an upgrade by global brokerage UBS from “Sell” to “Neutral” and an increase in its target price. UBS also pointed to a possible recovery in unsecured credit growth, improving asset quality and supportive liquidity conditions for large NBFCs. The move comes after Bajaj Finance shares had fallen 1.46% on September 22.
Why is Bajaj Finance share price rising today?
The primary reason behind the latest Bajaj Finance share price movement is the change in UBS’s view on the stock.
UBS upgraded Bajaj Finance to “Neutral” from “Sell” and raised its target price to ₹1,100 from ₹910, according to Moneycontrol. The brokerage expects Indian NBFCs to benefit from a potential recovery in personal loan growth and believes established lenders with strong personal loan franchises could participate in that recovery.
Bajaj Finance shares touched an intraday high of around ₹1,041 on September 23, gaining more than 3% at the day’s high. At around 1:05 PM, the stock was trading approximately 2.5% higher at ₹1,034.20.
The move also came as the broader market traded positively, with Bajaj Finance leading the Nifty gainers at midday.
What did UBS say about the NBFC sector?
The brokerage expects India’s unsecured lending cycle to improve, particularly through a recovery in personal loans.
Unsecured loans are loans that do not have a specific asset pledged as collateral. Personal loans and credit card loans are common examples. These products can generate higher yields for lenders, but they also require careful assessment of borrowers because there is no underlying asset to recover in case of default.
UBS expects personal loan growth for NBFCs to reach around 30%, compared with 9% for banks. It also highlighted healthy asset quality, adequate system liquidity and a more supportive lending environment.
For Bajaj Finance, this is relevant because the company has a large retail lending franchise covering consumer finance, personal loans and other credit products.
Bajaj Finance fundamentals remain a key factor
The latest quarterly results provide another part of the picture.
For Q1 FY27, Bajaj Finance reported consolidated profit attributable to owners of ₹5,985.75 crore, up 27.4% year on year. Consolidated assets under management, or AUM, increased 23.9% to ₹5.47 lakh crore as of June 30, 2026. Net interest income increased 22.9% to ₹12,571 crore.
Asset quality also improved. The consolidated gross NPA ratio stood at 0.96%, while the net NPA ratio was 0.39% during the quarter. Capital adequacy remained strong, with the consolidated CRAR at 20.90%.
These numbers matter because an NBFC’s growth needs to be assessed alongside the quality of its loan book. Rapid loan growth can become problematic if it is accompanied by rising defaults.
What does improving asset quality mean?
Asset quality refers to the health of a lender’s loan portfolio.
When gross and net NPA ratios remain under control, it generally indicates that a smaller proportion of loans are showing repayment stress. For Bajaj Finance, the latest quarterly numbers showed improvement in both gross and net NPAs compared with the year earlier period.
For investors, the combination of loan growth and controlled credit costs is therefore an important metric to track.
However, asset quality can change with economic conditions. Higher unemployment, weaker consumption or excessive unsecured lending could put pressure on borrowers and increase credit costs over time.
Why are interest rates and liquidity important for Bajaj Finance?
Funding costs are an important consideration for NBFCs because they borrow money and then lend it to customers.
When financial system liquidity is comfortable, funding conditions can become more supportive. Conversely, tighter liquidity or higher interest rates can increase the cost of funds.
The RBI has recently been managing surplus liquidity through measures including bond sales and variable rate reverse repos. Reuters reported that the banking system’s liquidity surplus had fallen substantially from earlier September levels following RBI measures.
This makes funding conditions an important factor for NBFC investors to monitor alongside loan growth and net interest margins.
What about Bajaj Finance’s growth outlook?
The company’s recent operating numbers continue to show expansion.
Bajaj Finance booked 16.13 million new loans in Q1 FY27, up 19.6% from the previous year. Its AUM growth of nearly 24% also indicates that the company continued expanding its loan book.
Jefferies has also maintained a positive view on the company’s longer-term growth prospects, while noting that near-term net interest margins could be affected as the business grows.
The key question is whether the company can maintain strong growth while preserving asset quality and profitability.
Risks investors should watch
The latest rally does not remove the risks associated with Bajaj Finance or the broader NBFC sector.
One important issue is regulatory risk. In August, Bajaj Finance shares came under pressure after the RBI proposed restrictions on revolving credit products for NBFCs. The proposal raised concerns because of Bajaj Finance’s exposure to flexi-loan products.
Other factors include:
- Rising borrowing costs
- Higher credit losses
- Slower consumer demand
- Changes in RBI regulations
- Pressure on net interest margins
- Valuation risk after periods of strong share-price performance
These factors can influence future earnings even when loan growth remains healthy.
What should investors watch next?
For those tracking the Bajaj Finance share price, the next focus should be on more than daily price movements.
Key indicators include AUM growth, new loan bookings, net interest margin, credit costs, gross and net NPA ratios, capital adequacy and funding costs.
The company’s ability to grow its loan book without a corresponding deterioration in asset quality will remain particularly important.
Conclusion
The latest rise in Bajaj Finance share price is primarily linked to UBS upgrading its view on the stock and raising its target price, alongside expectations of improving unsecured credit growth and supportive conditions for large NBFCs.
Bajaj Finance also enters this period with strong Q1 FY27 operating numbers, including higher profit, AUM growth and improved asset quality.
However, investors should also consider regulatory changes, funding costs, credit quality and valuation. The stock’s daily ranking among Nifty 50 or Sensex gainers provides a snapshot of market sentiment, but longer-term performance will depend on how the company’s earnings and loan book develop.
Frequently Asked Questions
1. Why is Bajaj Finance share price rising today?
Bajaj Finance shares gained around 3% on September 23, 2026, after UBS upgraded the stock from “Sell” to “Neutral” and raised its target price. The brokerage also expects a recovery in unsecured credit growth and sees improving asset quality and liquidity as supportive factors for large NBFCs.
2. What is the Bajaj Finance share price today?
Bajaj Finance shares touched an intraday high of approximately ₹1,041 on September 23, 2026. Around 1:05 PM, the stock was trading near ₹1,034.20, up about 2.5%. Share prices change throughout the trading session, so investors should check the latest NSE or BSE quote for the current price.
3. Why did UBS upgrade Bajaj Finance?
UBS upgraded Bajaj Finance to “Neutral” from “Sell” and raised its target price to ₹1,100 from ₹910. The brokerage cited expectations of a recovery in personal loan growth, healthy asset quality, adequate liquidity and a potentially more supportive unsecured lending cycle for Indian NBFCs.
4. How did Bajaj Finance perform in Q1 FY27?
Bajaj Finance reported consolidated profit attributable to owners of ₹5,985.75 crore in Q1 FY27, up 27.4% year on year. Consolidated AUM increased 23.9% to ₹5.47 lakh crore, while net interest income rose 22.9% to ₹12,571 crore.
5. Is Bajaj Finance’s asset quality improving?
Yes. In Q1 FY27, Bajaj Finance’s consolidated gross NPA ratio was 0.96%, while the net NPA ratio stood at 0.39%. Both measures were lower than the corresponding year earlier levels, indicating improvement in reported asset quality during the quarter.
6. What is AUM in Bajaj Finance?
AUM stands for Assets Under Management and represents the value of loans and other financial assets managed by the lender. Bajaj Finance’s consolidated AUM stood at ₹5.47 lakh crore as of June 30, 2026, up 23.9% year on year. AUM growth is an important indicator of lending activity for an NBFC.
7. How do interest rates affect Bajaj Finance?
Interest rates influence both the cost at which an NBFC raises funds and the rates it charges borrowers. Higher funding costs can put pressure on margins, while changing customer borrowing behaviour can affect loan demand. Liquidity conditions and RBI monetary policy are therefore important factors when analysing Bajaj Finance.
8. What are the major risks for Bajaj Finance investors?
Key risks include credit losses, changes in RBI regulations, higher funding costs, slower consumer credit demand and pressure on net interest margins. Regulatory proposals concerning revolving credit products also created uncertainty for the sector in August 2026.
9. Why is personal loan growth important for Bajaj Finance?
Personal loans are an important part of the unsecured lending market, where lenders provide credit without specific collateral. UBS expects a recovery in personal loan growth to support large NBFCs with established franchises. The impact on Bajaj Finance will depend on loan growth, pricing, credit quality and funding costs.
10. What should investors watch in Bajaj Finance’s next results?
Investors can track AUM growth, new loan bookings, net interest income, net interest margins, credit costs, gross and net NPAs, capital adequacy and funding costs. These indicators provide a broader view of the company’s operating performance than the daily Bajaj Finance share price alone.
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Jaspreet Singh Arora is the Chief Investment Officer at Equentis, where he heads a seasoned team of equity analysts and turns two decades of market experience into portfolios that consistently beat the benchmark. A go-to voice on cement, building-materials, real-estate, and construction stocks, Jaspreet previously ran research desks at leading brokerages, honing an eye for the metrics that truly move share prices. His plain-spoken analysis helps investors cut through noise and act with conviction. When he’s not deep-diving into earnings calls, you’ll find him unwinding over sports, weekend cricket or a good history podcast.
