Shares of Bajaj Finance will likely grab attention during Friday’s trading session, following the company’s business update for the second quarter that ended in September 2024.
According to the update, Bajaj Finance saw an increase in the number of new loans booked during the quarter. The company booked 14% more loans, with the figure rising to 9.69 million in Q2 FY25 compared to 8.53 million during the same quarter last year. Additionally, the Assets Under Management (AUM) for the company grew by 29%, reaching ₹3.73 lakh crore as of September 2024. This is a significant jump from the ₹2.9 lakh crore reported at the end of the September 2023 quarter. The AUM growth for Q2 FY25 represented an increase of about ₹19,700 crore.
Moreover, the company’s net liquidity surplus for the September quarter stood at ₹20,100 crore, showcasing its strong liquidity position. Bajaj Finance’s deposits book also experienced growth, with the figure reaching ₹66,100 crore as of September 2024, compared with ₹54,821 crore as of September 2023. This represents a 21% year-on-year growth in deposits.
In the first quarter of FY25, Bajaj Finance had reported a 14% year-on-year (YoY) growth in its consolidated net profit, which stood at ₹3,912 crore. Additionally, the company’s net interest income (NII) had advanced by 25% YoY, amounting to ₹8,365 crore for the same period. During the June quarter, Bajaj Finance also recorded a 10% increase in the number of new loans booked, reaching 10.97 million compared to 9.94 million in the same period a year ago.
The company resumed the sanction and disbursal of loans under its ‘eCOM’ and ‘Insta EMI Card’ offerings, following the Reserve Bank of India’s (RBI) decision to lift restrictions on these businesses in May 2024. The company also resumed the issuance of EMI cards, a product that was previously restricted.
Despite these positive figures, Bajaj Finance’s shares have underperformed in the market this year. The stock has only registered a 1.6% gain year-to-date (YTD), underwhelming in comparison to broader market trends. On Thursday, Bajaj Finance’s stock price saw a decline of 3.7%, ending at ₹7,417.60 on the NSE.
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