Bajaj Finance, one of India’s leading non-banking financial companies (NBFC), has reported a 10% year-on-year (YoY) increase in new loans booked for the first quarter of the fiscal year 2025 (Q1 FY25). The company booked 10.97 million new loans in Q1 FY25, up from 9.94 million in the same quarter last year.
The rise in new loan bookings can be attributed to the resumed sanctioning and disbursal of loans under the eCOM and Insta EMI Card segments. These businesses had been restricted by the Reserve Bank of India (RBI) but were cleared for operations again after the RBI lifted the restrictions on 2 May 2024. Additionally, the company has resumed the issuance of EMI cards, contributing to the growth in its loan portfolio.
Strong Growth in Customer Base and Assets Under Management (AUM)
As of 30 June 2024, Bajaj Finance’s customer franchise reached 88.11 million, a significant increase from the 72.98 million customers recorded at the same time in 2023. This reflects the company’s strong performance in attracting and retaining customers across its diversified portfolio of financial products.
Bajaj Finance’s assets under management (AUM) saw impressive growth, jumping by 31% to approximately Rs 354,100 crore as of 30 June 2024. This is a substantial rise from the Rs 270,097 crore in AUM reported at the close of the previous fiscal year, on 31 March 2023. The increase in AUM highlights the company’s robust lending activities and its ability to expand its market presence across retail, small and medium enterprises (SME), and commercial sectors.
Strong Liquidity Position and Growing Deposits Book
The company also reported a strong liquidity surplus, with net liquidity standing at approximately Rs 16,200 crore as of 30 June 2024. Bajaj Finance emphasized that its liquidity position remains robust, ensuring financial flexibility to meet its operational and growth needs.
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Bajaj Finance’s deposits book showed significant growth, rising 26% YoY to around Rs 62,750 crore as of 30 June 2024, compared to Rs 49,944 crore as of 30 June 2023. The strong performance in its deposit business further solidifies its position as a reliable and diversified financial institution.
Financial Performance and Market Reaction
In the fourth quarter of FY24, Bajaj Finance reported a 21.11% increase in consolidated net profit, reaching Rs 3,824.53 crore. The company’s total income jumped 31.36% to Rs 14,931.98 crore in Q4 FY24, compared to Q4 FY23. These results highlight Bajaj Finance’s ability to maintain strong financial growth and profitability despite challenging market conditions.
Shares of Bajaj Finance reflected investor confidence, rising 0.03% to Rs 7,253.95 on the Bombay Stock Exchange (BSE) following the announcement of the company’s performance.
Bajaj Finance continues to demonstrate its strength as one of India’s most diversified and well-established NBFCs. With a significant increase in new loans, a growing customer base, and strong liquidity, the company is poised for sustained growth in FY25. Its diversified lending portfolio across retail, SME, and commercial customers, combined with its ability to adapt to changing regulatory landscapes, positions Bajaj Finance as a leader in the financial services industry in India.
