Bajaj Finance

** Non-bank lender Bajaj Finance's shares BJFN.NS rise about 2% to 1,101.20 rupees

** Nomura ("buy") raises PT to 1,270 rupees from 1,140 rupees, implying 17.6% upside in next 12 months

** Says clarity on the definition of revolving credit is critical for non-bank lenders, noting the negotiations between shadow banks and RBI

** Attributes elevated competition as the reason for slowing urban loan growth momentum, but lifts assets under management (AUM) growth and net profit estimates over FY2027-29

** Average rating of 35 analysts tracking BJFN is "buy"; median PT is 1,200 rupees - LSEG-compiled data

** YTD, BJFN up 11%, outperforming 5% drop in financials .NIFTYFIN and 7.4% slide in Nifty 50 .NSEI

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

Aug 18 (Reuters) - Bajaj Finance Ltd BJFN.NS:

• ALLOTTED NCDS AGGREGATING TO 4.98 BILLION RUPEES

Source text: ID:nBSE5lPSwv

Further company coverage: BJFN.NS

(([email protected];;))

MUMBAI, Aug 14 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise 20 billion rupees ($209.68 million), through the reissue of 7.79% April 2036 bonds, three bankers said on Friday.

The non-banking finance company has invited bids for the issue on Monday, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on August 14:

*Size includes base plus greenshoe for some issues

($1 = 95.3825 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Priyanka G)

(([email protected]))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, August 13 (Reuters Breakingviews) - Never underestimate Mukesh Ambani's ability to find marquee foreign investors to back his vast empire. His latest champion is Bank of America BAC.N, which on Wednesday said it would buy 49.9% of Jio Credit, the lending unit of the tycoon's Jio Financial Services JIOF.NS, for up to $1.9 billion. The unusual deal is a bet on India's under-penetrated credit market, but also on Ambani's reputation for disruption.

The bank run by Brian Moynihan will pay 66.13 billion rupees ($693.33 million) in cash for a 26.5% stake in the subsidiary of the $18 billion Jio Financial, with the rest coming in the form of warrants convertible within 18 months. Besides growth capital, the Wall Street major can offer Jio Credit the benefit of its risk management know-how, similar to BlackRock's BLK.N partnership with the Indian group in asset management, and Allianz's ALVG.DE in insurance.

It also makes sense for BofA to follow companies into a fast-growing market. Multinational businesses including Apple AAPL.O and chipmaker Micron Technology MU.O are doubling down on manufacturing in the world's most populous country. The partnership could help Jio Credit tap some of BofA's global clients, while also allowing the American bank to do more business with them.

The transaction values Ambani's fledgling lending business at 2.5 times its post-money net book value. For BofA, that makes the deal an inexpensive pathway into India's booming credit market. For comparison, Jio Credit's $71 billion rival Bajaj Finance BJFN.NS, which boasts a loan book 18 times as large as the former's $3.2 billion, trades at 4.7 times its one-year forward book value, according to LSEG data.

The deal is unusual in one sense: there are few clear precedents from BofA's perspective, aside from a historic stake in China Construction Bank 601939.SS, which it inherited from Merrill Lynch and exited in 2013. It suggests a long-term wager on Ambani, who has reoriented India's telecom sector and is now aiming to replicate that success in financial services. Early signs are encouraging: Jio Credit more than doubled its loan book during the financial year ended March 31.

Nor can it hurt BofA's broader India businesses to have a deeper association with the empire of Ambani, whose businesses from digital communications to consumer retail are getting closer to their public debuts. BofA is rebuilding its local investment banking team and leaving behind an insider trading probe from 2024, which it settled with authorities in May without admitting or denying the findings, according to the regulator's statement.

Ambani's newest cross-border partner is going in with little to lose and a whole new market to win.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Bank of America will buy a 49.9% stake for up to $1.9 billion in Jio Credit, the non-bank lending unit of Jio Financial Services, the two firms said on August 12.

The U.S. bank will pay 66.13 billion rupees in cash ($693.33 million) for a 26.5% stake in the Indian lender. The rest of the investment will be in the form of warrants convertible within 18 months from the date of allotment.

(Editing by Liam Proud; Production by Aditya Srivastav and Streisand Neto)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

MUMBAI, Aug 7 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 11.15 billion rupees for bonds maturing in three years and three months, three bankers said on Friday.

The non-banking finance company will pay an annual coupon of 7.78% on this issue and had invited coupon and commitment bids earlier in the day, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on August 7:

*Size includes base plus greenshoe for some issues

(Reporting by Dharamraj Dhutia and Khushi Malhotra)

(([email protected]))

MUMBAI, Aug 6 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise 20 billion rupees ($210.22 million) through the sale of bonds maturing in three years and three months, three bankers said on Thursday.

The non-banking finance company has invited coupon and commitment bids for the issue on Friday, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on August 6:

*Size includes base plus greenshoe for some issues

($1 = 95.1400 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Harikrishnan Nair)

(([email protected]))

Updates with closing levels, fresh milestone

July 31 (Reuters) - Shares of Bajaj Finance BJFN.NS jumped as much as 9.3% to an all-time high on Friday after analysts said accelerating loan growth in the first quarter alongside improving credit quality reinforced confidence in the non-bank lender's earnings outlook.

The stock closed 8.3% higher at 1,141.20 rupees and was the top gainer on India's benchmark Nifty 50 index .NSEI, which ended up 0.27%.

On Thursday, Bajaj Finance reported a 28% rise in first-quarter profit after tax, while net interest income grew 23%, beating analyst estimates across key metrics and maintaining stable margins despite higher funding costs.

At least six brokerages raised their target prices after the results, with analysts citing a decline in bad loans despite a challenging credit environment.

CLSA said Bajaj Finance's calculated net slippage ratio fell 90 basis points year-on-year to 1.2%, while Nomura noted that gross stage-2 assets - loans showing elevated credit risk but not yet impaired - dropped to their lowest level since the COVID-19 pandemic.

UBS said the lender's assets under management climbed at its fastest pace in three quarters, driven by strong growth in consumer sales finance and gold loans.

(Reporting by Abhirami G and Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)

(([email protected]))

Rewrites paragraph 1, adds credit cost in paragraph 7,8

BENGALURU, July 30 (Reuters) - India's Bajaj Finance BJFN.NS posted a bigger-than-expected first-quarter profit on Thursday, helped by strong loan growth and improving asset quality.

The non-banking financial company reported a 28% year-on-year rise in consolidated profit after tax to 60.81 billion rupees for the quarter ended June 30, compared with analysts' expectation of a profit of 58.56 billion rupees, per data compiled by LSEG.

The lender benefited from robust retail credit demand, with assets under management in newer segments such as gold loans and tractor financing doubling from a year earlier.

Overall assets under management grew 24% from a year earlier, the fastest pace in three quarters.

Bajaj Finance's net interest income -- the difference between interest earned on credit and paid on borrowings -- rose 23% to 125.71 billion rupees.

The lender also continued to adopt a more cautious lending approach in segments like micro, small, and medium-sized enterprises (MSMEs) after grappling with higher delinquencies there.

As a result, its credit cost, a measure of provisions set aside for potential loan losses, improved to 1.54% in the first quarter from 1.65% three months ago and 1.87% a year earlier.

The company also set aside an additional 2.96 billion rupees as prudent macroeconomic provisions during the quarter. Excluding these provisions, credit cost was 1.31%, it said.

Its gross non-performing asset ratio improved to 0.96%, compared with 1.01% in the previous quarter and 1.03% a year earlier.

(Reporting by Nishit Navin; Editing by Ronojoy Mazumdar and Nivedita Bhattacharjee)

(([email protected];))

Rewrites throughout with management commentary

By Surbhi Misra

July 24 (Reuters) - India's Shriram Finance SHMF.NS expects borrowing costs to ease further following recent domestic credit ratings upgrades, after lower funding costs helped the non-bank lender post a jump in quarterly profit.

The lender's standalone profit rose 59.79% during the quarter to 34.45 billion rupees ($357.05 million), helped by a bigger loan book and wider lending margins as funding costs eased.

"Incremental cost of funds will be around 50 to 60 basis points lower compared with the previous quarter," Managing Director Parag Sharma told Reuters in a post-earnings interview, adding that the benefit would translate into lower interest costs.

However, rural demand, geopolitical developments and the impact of tariffs on small businesses remained key risks to the outlook, Sharma added.

Analysts expect Indian non-bank lenders to report strong June-quarter earnings, supported by resilient credit demand, healthy collections and easing funding costs despite seasonal weakness.

Mahindra & Mahindra Financial Services MMFS.NS posted a 69.7% jump in quarterly profit earlier this week, while larger peer Bajaj Finance BJFN.NS is due to report results next week.

Shriram Finance's assets under management rose 15.26% year-on-year to 3.14 trillion rupees, led by growth in commercial and passenger vehicle loans, along with MSME loans.

Its net interest income — the difference between interest earned on loans and paid on borrowings — rose 33.67% to 80.56 billion rupees, while net interest margin expanded to 9.04% from 8.61% in the preceding quarter and 8.11% a year earlier.

"The margin was slightly above 9% because of investment income," Sharma said, referring to income earned from temporarily deploying proceeds from the company's recent equity infusion. "Long term, we will still target around 8.5%."

The company's gross stage 3 assets, or loans overdue for more than 90 days, stood at 4.64% of total loans, compared with 4.58% in the preceding quarter.

($1 = 96.4850 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru; Editing by Ronojoy Mazumdar and Vijay Kishore)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

MUMBAI, July 22 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 11.40 billion rupees ($118.08 million) for the reissue of its 7.93% June 2029 bond, three bankers said on Wednesday.

It will offer a yield of 7.85% and had invited commitment bids for the issue earlier in the day, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on July 22:

*Size includes base plus greenshoe for some issues

($1 = 96.5450 Indian rupees)

(Reporting by Khushi Malhotra; Editing by Priyanka.G)

(([email protected]))

MUMBAI, July 21 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise up to 20 billion rupees ($207.82 million), including a greenshoe option of 10 billion rupees, through the sale of bonds maturing in 2 years and 11 months, three bankers said on Tuesday.

It will pay a coupon of 7.93% and has invited commitment bids for the issue on Wednesday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on July 21:

*Size includes base plus greenshoe for some issues

($1 = 96.2350 Indian rupees)

(Reporting by Khushi Malhotra)

(([email protected]))

MUMBAI, July 3 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth an aggregate 53.05 billion rupees ($556.66 million) for bonds maturing in three years and three months, and in 10 years, three bankers said on Friday.

The company will pay a coupon of 7.70% and 7.79% on these issues, and had invited bids earlier in the day, they said.

The company did not immediately respond to a Reuters request for comment.

Here is the list of deals reported so far on July 3:

*Size includes base plus greenshoe for some issues

($1 = 95.2100 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Harikrishnan Nair)

(([email protected]))

Bajaj Finance reported a 24% year‑on‑year rise in assets under management to ₹5,46,900 crore as of 30 June 2026, adding ₹36,900 crore during the April‑June quarter. Customer franchise grew by 16.8% to 124.43 million, and new loans booked increased 20% to 16.13 million compared with the same period last year. The deposit book stood at around ₹68,500 crore. The figures are provisional and subject to audit, giving investors a first look at the non‑bank lender’s operational performance for the first fiscal quarter.

Powered by Tijori

July 2 (Reuters) - Bajaj Finance Ltd BJFN.NS:

• BAJAJ FINANCE - AUM GREW BY 24% Y/Y AS OF 30 JUNE 2026

• BAJAJ FINANCE - DEPOSITS BOOK STOOD AT 685 BILLION RUPEES AS OF 30 JUNE 2026

Source text: ID:nnAZN4T5OEP

Further company coverage: BJFN.NS

(([email protected];))

MUMBAI, June 17 (Reuters) - India's Bajaj Finance BJFN.NS accepted bids worth 13.90 billion rupees ($147.28 million) for the reissue of 7.07% September 2028 bonds, three bankers said on Wednesday.

It will offer a yield of 7.80% and had invited commitment bids for the issue earlier in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on June 17:

*Size includes base plus greenshoe for some issues

($1 = 94.3775 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Harikrishnan Nair)

(([email protected], [email protected]))

By Dharamraj Dhutia

MUMBAI, June 11 (Reuters) - Indian companies are rushing to raise short-term debt after the central bank's measures to support the rupee triggered a sharp fall in borrowing costs, four merchant bankers said.

Companies, led by non-banking financial firms, are raising more than 310 billion rupees ($3.24 billion) through up to five-year bonds this week, the bankers said. The supply is one-third of what was raised in April and May, according to Reuters data.

The Reserve Bank of India on Friday announced a raft of measures aimed at drawing dollars into the country, including raising subsidised deposits and incentivising banks and state-run companies to raise funds overseas.

This has pushed corporate borrowing costs lower by 40-45 basis points, per LSEG benchmark 'AAA'-rated corporate bond yields of up to five years, while the spread over government bonds has narrowed.

Corporate bond yields had risen to their highest in seven years in May.

A rise in overseas borrowings could reduce the need for local debt supply, leading to a rally in bonds below five years, said Ajay Marwaha, head of fixed income markets at global wealth firm Nuvama.

State-run REC raised three-year funds at a coupon of 7.34% earlier this week, much lower than prevailing levels in the secondary market. NABARD, another state-run financial institution, raised funds for three years at 7.34% after cancelling a similar issue in May where rates could have touched nearly 8%.

Other major non-bank lenders lining up debt sales include Bajaj Finance BJFN.NS, Muthoot Finance MUTT.NS, Bajaj Housing Finance BAJO.NS and L&T Finance LTFL.NS, with planned issuances of 85 billion rupees, 27.5 billion rupees, 20 billion rupees and 15 billion rupees, respectively.

Despite the recent rally in bonds, investor appetite remains strong on expectations of further gains.

"Investors with a more than 18-month investment horizon are looking at corporate bond funds that present an attractive investment opportunity from a relative risk-reward perspective," said Puneet Pal, head of fixed income at PGIM India Asset Management.

($1 = 95.6950 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

(([email protected];))

MUMBAI, May 19 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 10.25 billion rupees ($106.18 million) for bonds maturing in 10 years, three bankers said on Tuesday.

It will pay an annual coupon of 8.08% on this issue, and had invited bids earlier in the day, they said.

The bonds will have a put option after three years.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on May 19:

*Size includes base plus greenshoe for some issues

($1 = 96.5325 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Eileen Soreng)

(([email protected]))

MUMBAI, May 18 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise up to 30 billion rupees ($311.34 million), including a greenshoe option of 10 billion rupees, through the sale of bonds maturing in 10 years, three bankers said on Monday.

It has invited coupon and commitment bids for the issue on Tuesday, they said, adding that the bond will have a put option after three years.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on May 18:

*Size includes base plus greenshoe for some issues

($1 = 96.3575 Indian rupees)

(Reporting by Dharamraj Dhutia, Khushi Malhotra; Editing by Nivedita Bhattacharjee)

(([email protected], [email protected]))

By Dharamraj Dhutia

MUMBAI, May 8 (Reuters) - Five AAA-rated non bank finance companies (NBFCs) are planning to raise as much as 150 billion rupees ($1.6 billion) through sale of bonds maturing from two years to five years, three merchant bankers said on Friday.

A drop in Indian corporate debt yields, especially for shorter term funds, has prompted companies to go back to the market after a quiet April.

Below are some of the issues likely to hit the market soon, based on information from merchant bankers, who declined to be identified as they are not authorised to speak to the media.

• Bajaj Finance aims to raise 90 billion rupees through two separate debt issuances, while Tata Capital plans to mobilise 17.70 billion rupees through a dual-tranche bond sale.

• Bajaj Housing Finance is targeting 15 billion rupees, and M&M Financial Services is looking to raise 10 billion rupees.

• Poonawalla Fincorp accepted bids worth 10 billion rupees earlier on Friday.

• None of the companies responded to Reuters' requests for comment.

• Yields on AAA-rated papers of up to five-year maturity have eased by around 15 basis points over last couple of days as oil prices have eased on hopes of a resolution to the Iran war.

• Bankers said firms are trying to front-load borrowings before volatility returns, particularly with geopolitical risks still unresolved.

• Benefit of bond funding over bank loans like tenor flexibility, better liability matching, faster rate transmission makes it favourable, Priyashis Das, CEO at a bond trading platform Altifi said.

($1 = 94.5450 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)

(([email protected];))

April 30 (Reuters) - Shares of India's Bajaj Finance BJFN.NS climbed about 4.7% on Thursday after it reiterated optimism about fiscal 2027 profits and maintained its long-term growth forecast despite the current slowdown in small business lending.

The non-bank lender's shares were trading at 973.50 rupees at 9:23 a.m. and were the top gainer on the benchmark Nifty 50 index .NSEI.

(Reporting by Urvi Dugar in Bengaluru)

(([email protected]; +91 9558725583;))

Rewrites throughout, adds details

By Pranav Kashyap, Nishit Navin and Ashwin Manikandan

BENGALURU/MUMBAI, April 29 (Reuters) - India's Bajaj Finance BJFN.NS on Wednesday posted a 22% year-on-year growth in net profit, aided by increased lending and improved asset quality, while tighter underwriting helped rein in credit costs.

The lender said it was optimistic about profits in the fiscal year 2027, and left its long-term profit growth forecast unchanged at 23-24%.

"(Loans to) MSME should start to come back into some growth momentum from the second half onwards... (and) should provide tailwind on the overall growth number," Bajaj Finance Managing Director Rajeev Jain said on an analyst call.

Segments such as gold loan financing and commercial vehicles should aid growth, Jain said.

Bajaj Finance lowered its long-term assets under management growth outlook as it continues to calibrate expansion following a period of elevated stress in segments such as small business lending.

The non-bank lender now expects assets under management (AUM) to grow between 23-25%, lower than its earlier forecast of 25-27%.

The company's credit cost for the March quarter - the expense set aside for potential loan defaults - improved to 1.65% from 2.17% a year earlier. It stood at 1.91% in the previous quarter.

The company estimates credit cost in the range of 1.45%-1.60% for the current fiscal year.

"We are entering the year with tailwinds on credit cost. We have momentum and can navigate the current environment," Jain said.

The quality of its loan book also improved, with gross non-performing assets as a percentage of total loans falling to 1.01% as of March end, from 1.21% three months earlier.

The company in a separate exchange filing also announced that Rajiv Bajaj, managing director of automaker Bajaj Auto, will step down from Bajaj Finance's board, ending his long-standing association with the lender.

Bajaj will not seek re-election at the lender's annual general meeting on July 30, and will cease to be a non-executive director, according to the filing.

DOUBLING DOWN ON AI

Bajaj Finance said it plans to deploy artificial intelligence across its business, including customer engagement, marketing, onboarding and internal processes.

"We expect 2026/27 to be probably the busiest year from an AI transformation (perspective)," Jain said.

The firm has set up a dedicated AI unit with 203 employees, and plans to expand to about 360 by June, he added.

The company has till date processed around 52 million voice‑to‑data conversions and about 2.3 million text‑to‑data conversions using AI, "leading to significantly better insights on engagements or conversations with customers," Jain said.

($1 = 94.8400 Indian rupees)

(Reporting by Pranav Kashyap and Nishit Navin in Bengaluru, and Ashwin Manikandan in Mumbai; Editing by Sonia Cheema and Mrigank Dhaniwala)

(([email protected];))

MUMBAI, April 17 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 20.04 billion rupees ($216.16 million) for bonds maturing in three years, three bankers said on Friday.

It will pay an annual coupon of 7.77% and had invited bids for the issue on Thursday, they said.

The company did not immediately respond to a Reuters' email seeking comment.

Here is the list of deals reported so far on April 17:

* Size includes base plus greenshoe for some issues

($1 = 92.7075 Indian rupees)

(Reporting by Dharamraj Dhutia)

(([email protected]))

April 3 (Reuters) - Bajaj Finance Ltd BJFN.NS:

• AUM GREW BY 22% AS OF 31 MARCH 2026

• NEW LOANS BOOKED GREW BY 20.5% Y/Y IN Q4 FY26

Source text: ID:nBSE75CNQQ

Further company coverage: BJFN.NS

(([email protected];;))

** Non-bank lenders Shriram Finance SHMF.NS and Bajaj Finance BJFN.NS rise 2% and 1%, while shadow lenders such as LIC Housing Finance LICH.NS, Muthoot Finance MUTT.NS and Jio Financial JIOF.NS gain 1.5%-2.5%

** Rise amid a CNBC-TV18 report that the Reserve Bank of India is not considering any proposal to cap the tenure or implement a force rotation of the top management of NBFCs

** CNBC-TV18's report follows market speculation that the central bank is contemplating such a move

** BJFN lost 10% last week, taking their three-week drop to about 18%; SHMF lost a modest 0.4% last week

** In a note dated March 10, 2026, Macquarie analysts led by Suresh Ganapathy said that such a regulation "could impact SHMF followed by BJFN and force them to plan for leadership transitions in the near to medium term"

** India's financials .NIFTYFIN lost 5.7% last week as benchmarks logged their worst week in years and confirmed correction, on higher crude prices due to the Middle East conflict, which renewed concerns over economy and earnings

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

MUMBAI, Feb 18 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 25 billion rupees ($275.67 million) for bonds maturing in three years and one month and in five years, three bankers said on Wednesday.

It will pay an annual coupon of 7.40% and 7.55% on these issues and had invited coupon and commitment bids earlier in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 18:

*Size includes base plus greenshoe for some issues

($1 = 90.6880 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

(([email protected]))

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

February 17 - By Ira Dugal, Editor Financial News, with global Reuters staff

Global tech leaders have descended on New Delhi this week as India hosts its first major artificial intelligence summit. The timing of the meet could not be better, as the ramifications of the AI boom are under heavy scrutiny. That's our focus this week.

As AI use expands, what kinds of safeguards do you believe are essential for India? Write to me at [email protected].

And Indian investors pile into gold ETFs as returns from the metal outpace equity gains. Scroll down for more on that.

THIS WEEK IN ASIA

** US military preparing for potentially weeks-long Iran operations

** Foreign cars flow to Russia through China, skirting Ukraine war sanctions

** After Gen Z uprising, Bangladesh vote shows limits of youth power

** ByteDance developing AI chip, in manufacturing talks with Samsung, sources say

** China's Lunar New Year travel rush is world's biggest annual migration

AI BIGWIGS HIT NEW DELHI

AI royalty — from OpenAI's Sam Altman to Google's Sundar Pichai — has descended on New Delhi for the revolving AI Impact event being hosted by India for the first time.

The summit, which lists "people, planet and progress" as its focus, is expected to feature agenda-setting discussions ranging from the impact of AI on daily lives, to how it is reshaping jobs and the environment.

Demand for services around the week-long event has surged: airfares have jumped, luxury hotels are charging up to $2,000 a night, and the venue is expected to be packed with everyone from top politicians to global business leaders.

Nvidia CEO Jensen Huang pulled out, though, due to "unforeseen circumstances".

India, widely seen as a laggard in AI despite its vast pool of tech talent, is racing to build out its AI capabilities, in what it sees as a $130 billion opportunity by 2032. Companies such as Google and OpenAI are now targeting the world’s most populous nation as their next major growth market.

With more than 800 million internet users and abundant data, India is a tantalising prospect for AI's growth, but it won’t be easy, Reuters Breakingviews columnist Ujjaini Dutta wrote in this piece.

The summit coincides with growing worries of AI’s disruptive power in markets at home and abroad. Stocks across India's IT sector have been pummelled recently on such worries.

And Indian regulators are trying to balance the technology’s risks and rewards.

One of the biggest risks for India - where formal jobs remain scarce - is the potential hit to employment. Call centres, a mainstay of India’s services economy, are already feeling the impact. Reuters journalists Munsif Vengattil and Aditya Kalra reported on the new wave of AI chatbots replacing human agents.

“Rapid, uncalibrated deployment of AI may boost output but risks displacing segments of the workforce faster than the economy can reabsorb them,” Chief Economic Adviser to the Indian government V. Anantha Nageswaran warned in a report last month.

Nageswaran flagged two other concerns: the opacity of many AI models, and the heavy demand for data centres — infrastructure that could strain an already resource‑constrained economy.

The India File explored these risks in an earlier edition; Catch up here if you missed it.

GROWING DISCOMFORT

Amid the AI fanfare, authorities' concerns about the technology have grown.

In revised rules released earlier this month, the government for the first time defined AI‑generated content and placed responsibility on social media platforms to ensure such material is clearly labelled. The changes accompanied a wider requirement to remove any unlawful content within three hours, down from the earlier 36‑hour deadline.

Financial regulators are also becoming more cautious. The Reserve Bank of India has asked lenders to adopt board‑approved policies governing the use of AI and to make information on AI models available for internal and external audits when required.

It has also said models used in financial decision‑making must include human oversight, and that the use of AI in products and services should be clearly disclosed.

The draft rules come as AI adoption accelerates in the financial sector.

Bajaj Finance BJFN.NS, India’s largest non-bank consumer lender by assets, last week disclosed increased use of AI in its operations.

On its earnings call, the company said it had used AI to analyse 20 million customer calls by converting voice to text to generate actionable insights, leading to 100,000 new offers where information was previously unavailable. It plans to expand AI‑driven identification of lending opportunities.

Market regulator SEBI has also signaled caution, requiring stronger oversight and enhanced disclosures around the use of AI in areas such as algorithmic trading, asset management, portfolio management and advisory services.

The caution is warranted as risks related to AI-driven decision-making grow.

A global EY survey of 975 C-suite leaders across 21 countries in October showed that nearly every company therein had already suffered financial losses from AI-related incidents, with average damages conservatively topping $4.4 million.

MARKET MATTERS

Indian investors are piling into gold exchange-traded funds (ETFs) at the fastest pace on record, with inflows into such funds overtaking flows into equity investments for the first time.

Flows to gold ETFs more than doubled in January from the previous month to 240.4 billion rupees ($2.66 billion), while equity flows fell 14% month-on-month.

Read here for more.

The demand for gold ETFs, which are backed by physical gold, was one factor that led to a surge in imports of the metal into India in January and widened the trade deficit.

THIS WEEK'S MUST-READ

India's decision to open up small sections of the farm sector as part of the U.S.-India interim trade framework has sparked protests from farmer groups in the country.

Thousands of Indian farmers protested across the country on Thursday, alleging the government had compromised their interests.

If the protests spiral, they could pressure the Narendra Modi-led government, which in the past has had to reverse planned changes to farm laws due to pushback from the politically powerful farm lobbies.

Read this explainer to understand the impact of the U.S.-India trade pact on the farm sector.

($1 = 90.5250 Indian rupees)

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

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MUMBAI, Feb 11 (Reuters) - India's Bajaj Finance BJFN.NS has accepted bids worth 5 billion rupees ($55.1 million) for bonds maturing in two years, three bankers said on Wednesday.

It will pay an annual coupon of 7.31% on this issue and had invited coupon and commitment bids earlier in the day, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 11:

*Size includes base plus greenshoe for some issues

($1 = 90.7275 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

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MUMBAI, Feb 10 (Reuters) - India's Bajaj Finance BJFN.NS plans to raise 10 billion rupees ($110.24 million), including a greenshoe option of 5 billion rupees, through the sale of bonds maturing in two years, three bankers said on Tuesday.

It has invited coupon and commitment bids for the issue on Wednesday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on February 10:

* Size includes base plus greenshoe for some issues

($1 = 90.7140 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Eileen Soreng)

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** India's Bajaj Finance BJFN.NS reports drop in quarterly profit due to accelerated provisioning and one-off costs (Full Story)

** Shares trading flat at 965.55 rupees

ONE-OFF PROVISIONS HIT PROFIT, CORE BUSINESS HOLDS UP

** Jefferies ("buy", PT: 1270 rupees) says December-quarter profit missed estimates due to one-time provisions and labour-law costs, but adds core profit rose about 23% y/y after adjusting for one-offs

** Brokerage says loan growth moderated to 22% y/y, but asset quality improved and credit cost guidance is encouraging; maintains BJFN as a top pick

** Antique Stock Broking ("buy", PT:1070 rupees) says higher provisions dented profit, but views the move as a prudent step that should support asset quality over the medium term

** Ambit Capital ("sell", PT 713 rupees) says tighter credit loss norms reset credit costs structurally higher and delay recovery to 20% RoE, citing rising competition from banks

** Emkay Global Financial Services ("reduce", PT: 950 rupees) says spike in provisions largely discretionary, underlying business momentum remains intact, with improving bad-loan trends and steady profitability outlook

(Reporting by Surbhi Misra in Bengaluru)

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Feb 3 (Reuters) - India's Bajaj Finance BJFN.NS posted a lower quarterly profit on Tuesday, hurt by a jump in loan loss provisions.

The non-banking financial company reported a 6% year-on-year fall in consolidated net profit to 39.78 billion rupees for the quarter ended December 31.

(Reporting by Nishit Navin; Editing by Sonia Cheema)

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