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Bajaj Finance and Shriram Finance are both large Indian non-bank lenders, but their FY2024–25 businesses have different centres of gravity: Bajaj describes a diversified, platform-led financial-services model, while Shriram’s disclosed assets under management (AUM) are led by commercial-vehicle finance. That difference changes which borrower, collateral, funding and credit-quality questions matter most. The figures below refer to the year ended 31 March 2025 or that date, as specified; they are not a current-performance or investment recommendation.
How do Bajaj Finance and Shriram Finance differ?
Bajaj Finance presents a broad customer-and-product strategy spanning consumer, MSME, commercial and rural customers. Its financial-services offerings include loans, deposits, payments, insurance, investments and broking, supported by physical and digital channels. Shriram Finance also has multiple lending lines, but its FY2025 AUM mix is more visibly anchored in vehicle finance, particularly commercial vehicles.
Scale alone does not establish which business is better. AUM measures the size of a managed loan book, not the returns earned after operating costs, funding costs and credit losses, or the risk taken to generate them.
| Measure | Bajaj Finance | Shriram Finance |
|---|---|---|
| AUM | ₹416,661 crore, consolidated, FY2024–25; up 26% year over year. | ₹263,190.27 crore, as of 31 March 2025. |
| Business mix | Diversified strategy across consumer, MSME, commercial and rural customers and several financial services; no comparable segment AUM breakdown is provided here. | Commercial vehicles are the largest disclosed segment; vehicle, equipment and other retail-credit lines are also material. |
| Profitability indicator | Consolidated PAT of ₹16,779 crore for FY2024–25, up 16% year over year. | Net interest margin (NIM) of 8.55% for FY2024–25; NIM is not profit after operating expenses and credit losses. |
Bajaj figures are from Bajaj Finance Limited’s FY2024–25 annual report (company investor relations). Shriram figures are from Shriram Finance Limited’s FY2024–25 annual-report materials (company annual reports). The measures and reporting presentations are not all like-for-like.
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What does Shriram’s vehicle-led AUM mix mean?
Shriram Finance reported total AUM of ₹263,190.27 crore as of 31 March 2025. Commercial-vehicle AUM was ₹118,560.50 crore on that date, the largest disclosed segment. Other reported segment balances show that the business is not solely a commercial-vehicle lender:
| Shriram Finance segment | AUM at 31 March 2025 |
|---|---|
| Commercial vehicles | ₹118,560.50 crore |
| Passenger vehicles | ₹54,104.49 crore |
| MSME | ₹37,413.55 crore |
| Construction equipment | ₹17,878.16 crore |
| Two-wheelers | ₹15,580.56 crore |
| Personal loans | ₹9,609.71 crore |
| Farm equipment | ₹5,206.60 crore |
| Gold loans | ₹4,836.70 crore |
All segment balances are company-reported AUM as of 31 March 2025. For a vehicle-heavy book, an investor assessing risk would examine whether borrowers can keep vehicles in productive use and generate cash flow, along with collateral resale values and collection performance. Those are analytical questions raised by the portfolio mix, not conclusions quantified by the segment table.
Rank #2
Shriram’s FY2024–25 annual-report overview says growth was driven by MSME, two-wheeler, farm-equipment and passenger-vehicle loans. It also describes fresh longer-tenor borrowings and improved credit ratings. Those disclosures provide context but do not, by themselves, establish the future performance or relative safety of the lender.
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What do Bajaj Finance’s FY2025 results say about growth and credit costs?
Bajaj Finance reported consolidated AUM of ₹416,661 crore for FY2024–25, up 26% year over year, and consolidated PAT of ₹16,779 crore, up 16%. For the same fiscal year it reported ₹30,028 crore of pre-impairment operating profit and ₹7,966 crore of impairment on financial instruments. The impairment figure is a credit-cost measure; it should be considered alongside income growth, asset quality and capital rather than read in isolation.
At 31 March 2025, Bajaj Finance reported consolidated gross NPA of 0.96% and net NPA of 0.44%. It reported consolidated CRAR of 21.93%, including Tier I capital adequacy of 21.09%, at that date. For FY2024–25, consolidated ROAA was 4.57% and ROAE was 19.19%. These are company-reported measures; differences in accounting scope and definitions can make direct comparisons with another lender misleading.
Bajaj Finance’s FY2024–25 annual report says: “The Company’s business model continues to generate healthy pre-impairment operating profits enabling it to withstand higher credit losses in times of stress such as these.” This is management’s description of its business model, not independent validation of how it will perform under stress.
Rank #4
Which risks should investors compare?
A useful comparison looks across the lending cycle rather than treating one ratio or a larger AUM figure as a verdict. Match the reporting period, accounting scope and metric definitions before comparing figures.
| Risk area | Why it matters | What the FY2025 disclosures establish |
|---|---|---|
| Portfolio concentration | Different borrower cash flows and collateral types react differently to economic conditions and asset cycles. | Shriram’s largest disclosed segment was commercial vehicles. Bajaj describes a more diversified, multi-product strategy. These descriptions do not quantify comparable concentration measures. |
| Credit quality | NPAs, delinquencies, write-offs, provisions and credit costs capture different aspects of realised and emerging stress. | Bajaj reports gross and net NPA and impairment figures. Obtain Shriram’s equivalent definitions and period values before comparing ratios. |
| Capital | Capital absorbs losses and supports growth; regulatory definitions and standalone versus consolidated scope matter. | Bajaj reported consolidated CRAR of 21.93% at 31 March 2025. A matched Shriram figure is not established by the cited overview. |
| Funding and liquidity | Market and institutional funding, repricing, tenor mismatches and liquidity access can amplify stress. | Shriram’s annual report discusses liquidity scenarios, marketable assets, undrawn lines and securitisation/direct assignment. Compare equivalent disclosures in both full reports. |
| Profitability through a cycle | Growth or a strong margin does not show resilience after operating expenses and credit losses. | Bajaj reports pre-impairment operating profit and impairment. Shriram reports NIM of 8.55% for FY2024–25; NIM is not directly comparable with profit after costs. |
| Distribution and underwriting | Acquisition channels, borrower selection and collections influence operating costs and credit outcomes. | Bajaj highlights platform and cross-sell channels; Shriram describes retail and vehicle-finance reach. The cited evidence does not establish superior underwriting by either lender. |
Is Bajaj Finance or Shriram Finance safer?
The FY2025 figures here do not support a categorical safety ranking. Bajaj’s reported NPA and capital ratios are useful indicators, but a Shriram comparison requires equivalent-period data calculated on a compatible basis. A complete assessment would also consider delinquencies, write-offs, provisioning, credit costs, funding mix, liquidity buffers and the composition of each loan book. A low NPA ratio or a high margin on its own is not a complete measure of risk.
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For a practical review, use the FY2024–25 audited reports for both companies and check each metric’s date, consolidated or standalone scope, and definition in the notes. Do not combine Shriram’s later company-profile snapshot—AUM of ₹313,798.4 crore and 3,225 branches as of 30 June 2026—with Bajaj’s FY2025 audited figures as though they were contemporaneous.
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