Bajaj Finance Rallies Over 4.50% as GST Relief on Insurance Boosts Investor Sentiment

Mumbai, September 4, 2025: Bajaj Finance Limited’s share price is witnessing a significant rally today. As of 10:00 AM, the shares are up by 4.63%, or 41.50 and are trading at ₹937.80. This comes after yesterday’s GST council meeting, where a decision was taken to remove the GST burden on premiums paid on individual life and health insurance policies.

Nil GST on Life and Health Insurance Premium

Yesterday, the GST council held its 56th meeting, where it removed the four-slab system and limited the GST burden to only two slabs – 5% and 18%, with a special 40% GST on luxury and sin goods. However, another sweeping decision exempted premiums paid on individual life and health insurance from GST. This means that no GST is liable on premiums paid by an individual for individual life and health insurance.

The measure is expected to make insurance policies more affordable, effectively boosting demand for insurance companies, as well as NBFCs like Bajaj Finance. This is because Bajaj Finance has comprehensive exposure to cross-selling of insurance and financial products.

Trading Volume at 77.34 Lakh Shares

The current trading volume for Bajaj Finance shares stands at 77.34 lakh shares, worth ₹317.20 crore. The company’s market cap has increased to ₹5.58 lakh crore, with the free float market cap at ₹2.47 lakh crore. Until now, the shares have traded within a range of ₹942.75 and ₹912.25. The current P/E ratio is 31.44.

Higher Market Penetration with Enhanced Affordability

The removal of GST burden on individual life and health insurance premiums is a welcome step for consumers, insurance policies and NBFCs like Bajaj Finance. Bajaj Finance will be able to ensure high penetration in the insurance market as insurance policies will become more affordable.

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