New Delhi, Feb. 4 -- Bajaj Finance Ltd's consolidated profit after tax for the December quarter (Q3FY26) is up 23% year-on-year to Rs.5,317 crore if accelerated provisions for expected credit loss (ECL) and exceptional charges due to the new labour codes are kept aside. While these charges are categorized as one-offs, a portion of them could indeed be recurring.

Bajaj Finance recaliberated its loss given default (LGD) policy to be more conservative, resulting in a one-time accelerated provision of Rs.1,406 crore for expected credit losses (ECL) in Q3. LGD is an estimate of the eventual loss experienced by a lender after recoveries. The elevated LGD estimate is partially due to excessive consumer leverage or indebtedness, which in turn, i...