Bajaj Finance, one of India’s leading non-banking financial companies (NBFC) reported a 13 per cent year-on-year increase in consolidated net profit to Rs 4,000 crore for the quarter ending September 30, 2024, up from Rs 3,551 crore in the same period last year. Despite the growth, the result fell short of market expectations, with a Moneycontrol poll of six brokerages predicting a 33 per cent rise in net profit to Rs 4,464 crore.
The company’s assets under management (AUM) saw a significant 29 per cent growth, reaching Rs 3.73 lakh crore as of September 30, 2024, compared to Rs 2.9 lakh crore a year ago. In Q2FY25 alone, AUM increased by Rs 19,732 crore.
Bajaj Finance reported a 23 per cent increase in net interest income (NII) to Rs 8,838 crore in Q2FY25, up from Rs 7,196 crore in Q2FY24. Total net income for the quarter rose 24 per cent to Rs 10,946 crore from Rs 8,847 crore. The company’s customer base also expanded by 20 per cent to 92.09 million, with 3.98 million new customers added in Q2FY25.
However, asset quality weakened. Gross Non-Performing Assets (NPA) stood at 1.06 per cent, and Net NPA at 0.46 per cent, as of September 30, 2024, compared to 0.91 per cent and 0.31 per cent, respectively, a year earlier. The company’s loan losses and provisions surged 77 per cent to Rs 1,909 crore, from Rs 1,077 crore in Q2FY24.
Bajaj Housing Finance, a subsidiary of Bajaj Finance, saw a 21 per cent rise in profit after tax to Rs 546 crore in Q2FY25, from Rs 451 crore a year ago. The AUM increased by 26 per cent, reaching Rs 1.03 lakh crore as of September 30, 2024. NII for the subsidiary rose 13 per cent to Rs 713 crore in the same period.
Bajaj Financial Securities posted a notable growth in profit after tax, reaching Rs 37 crore in Q2FY25, up from Rs 13 crore in Q2FY24. The company’s net total income increased to Rs 121 crore, with its margin trade financing (MTF) book growing to Rs 5,430 crore, more than doubling from Rs 2,056 crore a year earlier.
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Despite the steady performance across segments, Bajaj Finance continues to face challenges in the personal loan segment, particularly in rural regions, which has impacted its overall results.
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