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A Study On the Capital Structure of Bajaj Finance Limited
Subject area: Management and Commerce · Area of research: Finance and Capital Structure Analysis of NBFC
DOI: https://doi.org/10.64388/IREV10I2-1720279
Abstract
This research focuses on an analysis of the capital structure of Bajaj Finance Limited (BFL), India’s biggest non-banking financial company through secondary financial analysis and primary survey of investors' perceptions. The secondary analysis covers BFL’s consolidated financial statements from FY2022 to FY2026, using ratio and trend analysis, CAGR calculations, a ten-peer benchmarking work, and a one-sample t-test to assess how the company's leverage behaved during a period of rapid growth. The findings show that BFL’s debt-to-equity ratio remained within a narrow 3.74-3.99x range for five years despite its loan book nearly tripling, supported by borrowings and net worth growing at almost identical rates (27.4% versus 27.1% CAGR). Capital adequacy, although it has fallen from 27.22% to 21.60%, it is still well above the RBI’s regulatory floor of 15%, with Tier-I capital always being more than 95% of the total. Low BFL’s debt to equity ratio is good since there are no such things going bad on their own either; also no competitor could have been compared yet. On the primary side, 84.5 % of respondents were aware of BFL, 67.5 % rated its financial performance positively, and 59 percent expressed willingness to invest. There is a relationship between perception and investment by investors that may have been tested with chi-square test. This article is about why a better bank was going to exist at that time as opposed today when dealing with stock markets.
Keywords
Capital Structure, Bajaj Finance Limited, NBFC, Debt-Equity Ratio, Capital Adequacy Ratio (CRAR), Leverage, Investor Confidence, Scale Based Regulation
How to cite this paper
@article{1720279,
author = {Shaheen, Siva Prasad Babu M},
title = {A Study On the Capital Structure of Bajaj Finance Limited},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {2},
pages = {193-197},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1720279.pdf},
abstract = {This research focuses on an analysis of the capital structure of Bajaj Finance Limited (BFL), India’s biggest non-banking financial company through secondary financial analysis and primary survey of investors' perceptions. The secondary analysis covers BFL’s consolidated financial statements from FY2022 to FY2026, using ratio and trend analysis, CAGR calculations, a ten-peer benchmarking work, and a one-sample t-test to assess how the company's leverage behaved during a period of rapid growth. The findings show that BFL’s debt-to-equity ratio remained within a narrow 3.74-3.99x range for five years despite its loan book nearly tripling, supported by borrowings and net worth growing at almost identical rates (27.4% versus 27.1% CAGR). Capital adequacy, although it has fallen from 27.22% to 21.60%, it is still well above the RBI’s regulatory floor of 15%, with Tier-I capital always being more than 95% of the total. Low BFL’s debt to equity ratio is good since there are no such things going bad on their own either; also no competitor could have been compared yet. On the primary side, 84.5 % of respondents were aware of BFL, 67.5 % rated its financial performance positively, and 59 percent expressed willingness to invest. There is a relationship between perception and investment by investors that may have been tested with chi-square test. This article is about why a better bank was going to exist at that time as opposed today when dealing with stock markets.},
keywords = {Capital Structure, Bajaj Finance Limited, NBFC, Debt-Equity Ratio, Capital Adequacy Ratio (CRAR), Leverage, Investor Confidence, Scale Based Regulation},
month = {August},
doi = {https://doi.org/10.64388/IREV10I2-1720279}
}