Bajaj Finance to focus on green finance, zero trust strategy, multi cloud platform

Bajaj Finance on January 29 said that the company will focus on green finance, zero trust, and multi-cloud as part of a long-range strategy between 2025 and 2029, according to the investor presentation.

The company said it will start the financing of solar and electric vehicle products to retail and MSME customers in the fourth quarter of the current financial year. Bajaj Finance is targeting Rs 2,000 crore in green finance in the next financial year.

This was because, the management said India's green initiatives target net zero emissions by 2070, 45 percent emission reduction by 2045, creating a Rs 35 lakh crore opportunity by 2030.

The company will also invest deeply and implement critical security policies in the next 12 to 18 months and deliver comprehensive zero trust initiatives by FY26, investor presentation said.

Further, the company will implement phase 1 covering the top 40 of 94 applications in the next 18 months, the presentation said.

Under the long-term strategy between 2024 and 2028, the company had outlined 35 strategies, of which 28 were green, and 7 were work in progress.

On products, 4 out of 9 strategies are live and 5 are work in progress, the company said.

The company said they have made significant efforts on account aggregator and GenAI.

Bajaj Finance will cross 30 million account aggregator consents by FY25, and it is currently implementing 29 GenAI use cases across 25 work streams, which will deliver an annual cost save of Rs 150 crore in FY26 alone, the presentation showed.

Earlier today, Bajaj Finance reported an 18 percent year-on-year (YoY) rise in its consolidated net profit for the third quarter of FY25 at Rs 4,308 crore, surpassing analysts’ estimates, supported by a robust increase in assets under management. A Bloomberg poll of analysts had projected a lower net profit of Rs 4,136 crore.

Bajaj Finance’s net interest income (NII) for the quarter rose 23 percent YoY to Rs 9,382 crore from Rs 7,655 crore in Q3 FY24. The strong performance was supported by a robust increase in assets under management (AUM), which surged 28 percent to Rs 3.98 lakh crore as of December 31, 2024, compared to Rs 3.11 lakh crore in the same period last year.