Bajaj Finance Share Price Gains for the 2nd Straight Day; Up 3.85%

On January 02, 2025, Bajaj Finance’s share price traded at 3.85% higher at ₹7,202.50 at 11:30 AM on the NSE. The stock opened at ₹6,980 higher than ₹6,935.30 at its previous close. The stock surged more than 1% yesterday.

Positive Outlook in AUM and NIMs

As per news reports, in the coming quarter, the company may report solid growth in assets under management, supported by strong performance across sectors such as mortgages, sales financing, securities lending, and new businesses. Net interest margins are also expected to show improvement.

Q2 FY25 Financial Highlights

For Q2 FY25, Bajaj Finance reported a significant growth in its loan book, with assets under management (AUM) rising by 29% year-on-year to ₹3.73 trillion, up from ₹2.9 trillion in Q2 FY24.

The company’s net interest income (NII) also showed healthy growth, expanding by 23% to ₹8,838 crore compared to ₹7,196 crore in the same period of the previous year. Despite elevated loan loss provisions, which rose by 77%, Bajaj Finance’s consolidated net profit (PAT) saw a 13% year-on-year increase, reaching ₹4,014 crore in Q2 FY25.

Additionally, the company’s cost of funds increased slightly to 7.97%, but net interest margins (NIMs) are expected to stabilise in the coming quarters.

Bajaj Finance’s deposit book grew by 21% YoY, reaching ₹66,131 crore by September 30, 2024. Deposits contributed 20% to the consolidated borrowings, providing a stable and low-cost funding base.

Loan loss provisions rose by 77% YoY to ₹1,909 crore, up from ₹1,077 crore in the same period last year. The company acknowledged a mixed quarter with good growth in loan volumes, assets under management (AUM), and operating efficiencies. However, the elevated loan losses and the impact on Return on Assets (ROA) indicated that the quarter was not entirely smooth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.