Bajaj Finance AUM crosses Rs 3 lakh crore in December quarter; stock rises 3% on Q3 update

Bajaj Finance mentioned that its liquidity position remains strong at Rs 11,600 crore

The Bajaj Finance stock gained over 3 percent on January 4, a day after the company shared business update for the December quarter in its assets under management (AUM) grew 35 percent on-year to Rs 3.11 lakh crore, suggesting a strong festive period.

This is the first time that the company's AUM has crossed the Rs 3-lakh-crore mark.

Bajaj Finance's deposit book also grew by 35 percent to Rs 58,000 crore. During the quarter, it booked 98.6 lakh new loans, a YoY growth of 26 percent.

At 9:17 am, Bajaj Finance shares were trading 3 percent higher at Rs 7,613.00 on the National Stock Exchange (NSE).

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Bajaj Finance's total franchise stood at 8.4 crore, up 22 percent YoY. New customer acquisition remained healthy with the NBFC acquiring 38 lakh new customers against 31 lakh in the year-ago period.

Bajaj Finance's customer addition trend was largely in line with prior festive quarters "suggestive of the fact that the RBI ban on two of its products did not have any outsized impact", analysts at Motilal Oswal said.

In November, the Reserve Bank of India had asked Bajaj Finance to stop issuing new loans through its “eCOM” and “Insta EMI Card” for non-compliance with digital lending guidelines.

The company successfully leveraged traditional channels (except digital/e-commerce) for newer customer acquisitions, it added. The brokerage has a buy rating on the stock.

Bajaj Finance said in its regulatory filing that its liquidity position remains strong at Rs 11,600 crore. In November, the company raised Rs 8,800 crore through a Qualified Institutional Placement (QIP) issue.

Post the QIP, it also completed its fundraising worth Rs 10,000 crore, which the board had approved in October. Earlier, it raised Rs 1,200 crore through a preferential issue of shares to promoter Bajaj Finserv.

Also Read | Analyst Call Tracker: Banks, infra dominate Dec ‘buy’ lists; Bajaj Finance in top bets of 2023

On January 3, shares of Bajaj Finance ended half a percent lower at Rs 7,381.20 on the National Stock Exchange (NSE). In the past year, the stock has risen around 12 percent, underperforming benchmark Nifty gained 18 percent during the period.

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