Bajaj Finance shares jumped nearly 5% on Thursday, trading at ₹8,092.70, following the announcement of strong Q3 FY25 financial results. The company reported an 18% year-on-year (YoY) increase in consolidated net profit to ₹4,308 crore, driven by robust growth in net interest income (NII) and increased loan disbursements during the festive season. On a standalone basis, the lender posted a 17% YoY rise in net profit, reaching ₹3,706 crore.
The company’s standalone NII surged by 22% YoY to ₹8,500 crore, supported by a 22% increase in loans booked, which totaled 11.96 million during the quarter. Consolidated new loans booked reached a record 12.06 million, reflecting strong demand across segments. This contributed to a 28% YoY growth in consolidated assets under management (AUM) to ₹3.98 trillion, while standalone AUM climbed 26% YoY to ₹2.93 trillion.
Bajaj Finance witnessed its highest-ever quarterly increase in its customer base, adding 5.03 million new customers and bringing its total customer franchise to 97.12 million, a 21% YoY growth. Despite strong growth, the company’s loan loss provisions increased by 61% YoY to ₹2,008 crore as it maintained a cautious approach to risk management.
The company highlighted that the net increase in Stage-2 and Stage-3 assets had stabilized. Gross non-performing assets (NPA) were reported at 1.12%, while net NPA stood at 0.48%. The lender continues to take proactive steps to reduce exposure to customers with multiple unsecured loans, thereby mitigating future credit risks.
In its strategic update, Bajaj Finance clarified that the discontinuation of co-branded credit cards with RBL Bank and DBS Bank India would not affect its existing customers or revenue streams. The company further emphasized that its collaboration with Bharti Airtel is progressing well, with two Bajaj Finance products already launched on the Airtel Thanks App. An additional nine products are expected to be rolled out by March 2025 to enhance digital penetration.
Bajaj Finance’s steady return on assets and improving profit momentum have positioned it well for future growth, despite elevated provisions. Investors have reacted positively to the company’s performance and strategic initiatives, pushing shares to their highest in 52 weeks.
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