Bajaj Finance Ltd 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.
Ahead of the results, Bajaj Finance stock gained 2 percent on Wednesday, closing at Rs 7,760 on the NSE.
On the asset quality front, Bajaj Finance’s gross non-performing assets (GNPA) rose to 1.12 percent as of December 31, 2024, from 0.95 percent a year earlier. Similarly, net non-performing assets (NNPA) increased to 0.48 percent from 0.37 percent. The provisioning coverage ratio on stage 3 assets stood at 57 percent.
Provisions for loan losses increased significantly to Rs 2,043 crore in Q3 FY25, up from Rs 1,248 crore a year ago. As a percentage of average assets under finance, loan losses and provisions stood at 2.16 percent.
The lender’s capital adequacy ratio (CRAR), including Tier-II capital, stood at 21.57 percent, with Tier-I capital at 20.79 percent as of the end of Q3 FY25. Net total income saw a 26 percent jump to Rs 11,673 crore, while pre-provisioning operating profit climbed 27 percent to Rs 7,805 crore.
The company recorded its highest-ever quarterly increase in customer franchise, adding 5.03 million new customers in Q3 FY25. Its total customer base stood at 97.12 million, up 21 percent from 80.41 million a year ago. Additionally, new loans booked in the quarter also touched an all-time high of 12.06 million, reflecting a 22 percent increase over Q3 FY24.
Bajaj Housing Finance
Profit after tax increased by 25 percent in October-December quarter to Rs 548 crore from Rs 437 crore in a similar period.
Assets under management grew by 26 percent to Rs 1.08 lakh crore as of December 31, 2024 from Rs 85,929 crore as of December 31, 2023.
Net interest income increased by 25 percent in Q3FY25 to Rs 806 crore from Rs 645 crore in Q3FY24.
Gross NPA and Net NPA as of December 31, 2024 stood at 0.29 percent and 0.13 percent, respectively, as against 0.25 percent and 0.10 percent as of December 31, 2023. The company has provisioning coverage ratio of 55 percent on stage 3 assets. Capital adequacy ratio (CRAR) (including Tier-II capital) as of December 31, 2024 was 27.86 percent.
Bajaj Financial Securities
Profit after tax increased by 119 percent in Q3FY25 to Rs 35 crore from Rs 16 crore in Q3FY24.
Margin trade financing (MTF) book grew by 70 percent to Rs 5,392 crore as of December 31, 2024 from Rs 3, 167 crore as of December 31, 2023.
Net interest income increased by 123 percent in Q3FY25 to Rs 69 crore from Rs 31 crore in Q3FY24.
Net total income increased by 49 percent in Q3FY25 to Rs 110 crore from Rs 74 crore in Q3FY24.
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