Bajaj Finance Q2 Update: AUM Rises Over 29%

Bajaj Finance Ltd.'s assets under management rose 29% to Rs 3.74 lakh crore in the quarter ended September, according to a provisional quarterly business update filed with stock exchanges on Thursday.

The non-banking financial service provider's loan book grew by 14% year-on-year to 9.69 million in the second quarter.

Net liquidity surplus stood at Rs 20,100 crore as of September, while the company’s deposits book came at Rs 66,100 crore, a growth of 21% year-on-year.

Bajaj Finance's net interest income soared 25% in the first quarter to Rs 8,365 crore compared to the same period last year. Total revenue from operations climbed by 28.8% to Rs 16,098 crore for the quarter ending in June year-on-year.

The lender's other income also saw a significant increase, rising 97.8% year-on-year to Rs 3.64 crore.

Loan losses and provisions surged 70% to Rs 1,685 crore in the first quarter, up from Rs 995 crore in the same period last year. This increase was attributed to lower collection efficiencies, as noted in its investor presentation.

The company's net loan loss to average assets under finance stood at 1.99% in the first quarter. It was, however, projected at 1.75–1.8% in financial year 2025.

The nonbank financier's assets under management rose 31% year-on-year to Rs 2.70 lakh crore, up from Rs 1.80 lakh crore a year ago.

New loans booked by the lender grew by 10.3% year-on-year, reaching 10.97 million for the quarter ending in June.

Shares of Bajaj Finance fell as much as 4.18% during the day to Rs 7,381 apiece on the NSE. However, it pared the gains to close 3.49% lower at Rs 7,433.85, compared to a 2.12% decline in the benchmark Nifty 50.

The stock has fallen by 6.70% in the last 12 months and risen by 1.85% year-to-date.

Out of 35 analysts tracking the company, 25 maintain a 'buy' rating, five recommend a 'hold,' and five suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 8.9%.