03 - 08 - 2026

Bajaj Finance’s AI Engine Accelerates Lending, Collections and Customer Acquisition in first quarter

Artificial intelligence is rapidly transforming the lending business at Bajaj Finance Ltd., with the non-banking financial company (NBFC) reporting a sharp rise in AI-driven loan disbursements and customer engagement during the first quarter of FY27. The company’s latest operational disclosures indicate that AI is no longer a pilot initiative but an increasingly significant contributor to its core lending, collections, and customer acquisition businesses.

Rethinking lending with AI

According to the company’s Q1 FY27 disclosures, artificial intelligence facilitated the disbursement of nearly ₹3,000 crore worth of loans during the quarter, representing a four-fold increase compared with the same period last year. AI-driven lending now contributes 8.2% of Bajaj Finance’s net Assets Under Management (AUM) addition, up from approximately ₹2,250 crore and around 7% of net AUM addition recorded in Q4 FY26, highlighting the growing role of machine learning and predictive analytics in the company’s lending operations.

The disclosures suggest that Bajaj Finance is increasingly embedding AI across multiple customer touchpoints—from identifying eligible borrowers and generating personalized loan offers to automating debt collection processes—thereby improving operational efficiency while expanding its lending portfolio.

One of the most significant developments during the quarter was the rise in AI-assisted lending opportunities. The company reported that ₹517 crore worth of loans were disbursed from opportunities identified through AI models, compared with ₹372 crore in the previous quarter, reflecting the increasing accuracy of AI algorithms in identifying creditworthy customers and improving loan conversion rates.

The pace of customer engagement through AI also accelerated sharply. During the quarter, the company’s AI systems generated nearly 400,000 personalized loan offers, a four-fold increase from approximately 100,000 offers generated in Q4 FY26. The substantial growth indicates that AI-powered recommendation engines are playing an increasingly important role in expanding customer reach and improving cross-selling opportunities across Bajaj Finance’s extensive retail customer base.

Artificial intelligence has also begun reshaping the company’s collections business. Bajaj Finance disclosed that AI handled nearly one million debt collection cases during Q1 FY27, representing a ten-fold increase over the previous quarter. The growing adoption of AI in collections is expected to improve recovery efficiency while enabling more personalized and data-driven customer interactions.

The latest figures underscore a broader shift within India’s financial services industry, where lenders are increasingly deploying artificial intelligence not merely as a support tool but as a strategic growth engine. AI-driven underwriting, fraud detection, customer acquisition, risk assessment, and collections are emerging as critical differentiators for large financial institutions seeking to improve scalability while maintaining asset quality.

Industry analysts believe the latest disclosures reinforce Bajaj Finance’s leadership in digital transformation within the NBFC sector.

“The Q1 FY27 numbers demonstrate that artificial intelligence is becoming deeply integrated into Bajaj Finance’s operating model rather than remaining a standalone technology initiative,” market observers noted. “The rapid increase in AI-led loan disbursements, customer targeting and collections reflects how advanced analytics can simultaneously improve productivity, customer experience and portfolio growth.”

The company’s AI-led initiatives come at a time when financial institutions globally are investing heavily in generative AI, predictive analytics, and intelligent automation to streamline lending operations, reduce operational costs, strengthen risk management, and deliver highly personalized financial products.

For Bajaj Finance, the latest quarter suggests that artificial intelligence is evolving from an experimental capability into a measurable business driver, contributing meaningfully to loan growth, customer engagement, and operational efficiency. As AI adoption continues to deepen across the organisation, its contribution to overall AUM growth and profitability is expected to expand further in the coming quarters.

Subramanya Joshi