Bajaj Finance Q2FY25 Results: Key Insights & Future Outlook
Stocks in News | Shares of Bajaj Finance Ltd (BFL) surged over 6% on October 23, 2024, after the company reported a significant year-on-year (YoY) increase of 13% in its consolidated net profit for the second quarter of fiscal year 2025, reaching Rs 4,013.7 crore. A notable contributor to this growth was a one-time gain of Rs 2,544.11 crore from the sale of its stake in Bajaj Housing Finance Ltd (BHFL).
Expanded Earnings and Revenue
The consolidated figures, which account for the performance of subsidiaries including Bajaj Housing Finance and Bajaj Financial Securities, show a promising upward trend. Net interest income (NII) saw a significant jump of 22.8%, rising to Rs 8,837.7 crore from Rs 7,196.3 crore in Q2 FY24.
Overall, the company’s net total income grew by 24% to RS 10,946 crore, underlining a strong revenue-generating capability.
Growth in Assets Under Management
Assets Under Management (AUM) experienced a robust increase of 29% YoY, reaching Rs 3,73,924 crore. New business lines contributed 2-3% to this growth, indicating successful expansion into new markets and products.
Asset Quality and Loan Performance
Despite a slight weakening in asset quality on an annual basis, Bajaj Finance maintains one of the industry's lowest non-performing asset (NPA) levels. The gross and net NPA ratios stood at 1.06% and 0.46%, respectively, at the end of Q2, slightly higher than the previous year’s figures of 0.91% and 0.31%.
Loan Book Growth and Deposits Increase
The period also saw a 14% increase in new loans booked, with a total of 9.69 million in Q2 FY25, up from 8.53 million in the prior year. Additionally, Bajaj Finance's deposit book grew by 21% YoY to Rs 66,131 crore, with deposits now making up 20% of consolidated borrowings, reflecting increased trust and confidence from depositors.
Customer Growth
In a strategic push to expand its customer base, Bajaj Finance added 3.98 million new customers during the quarter and projects to reach 15-16 million new customers by FY25.
The company’s customer franchise stood at 92.09 million as of 30 September 2024, with ambitions to cross the 100 million mark in the upcoming fiscal year, setting a robust foundation for future growth.
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