Bajaj Finance Q3 results: Consolidated net profit up 18% to Rs 4,308 cr

Consumer financier Bajaj Finance on Wednesday reported an 18 per cent year-on-year (Y-o-Y) increase in consolidated net profit to Rs 4,308 crore in the third quarter of the current financial year (Q3FY25) on the back of robust rise in net interest income (NII), and fees and commission income. On a standalone basis, the Pune-based lender reported a 17 per cent Y-o-Y increase in net profit to Rs 3,706 crore in the quarter.

 

Consolidated numbers include the businesses of the lender's subsidiaries Bajaj Housing Finance, and Bajaj Financial Securities.

 

The lender's standalone NII grew 22 per cent Y-o-Y to Rs 8,500 crore, driven by a 22 per cent Y-o-Y increase in the number of loans booked, which reached 11.96 million in Q3. This growth was supported by strong loan demand during the festive and the holiday season. On a consolidated basis, new loans booked were highest ever at 12.06 million in Q3.

 

Additionally, the customer franchise, on a consolidated basis, stood at 97.12 million at the end of Q3, up 21 per cent Y-o-Y. In Q3, the lender recorded the highest-ever quarterly increase in its customer franchise at 5.03 million.

 

The standalone asset under management (AUM) of the lender increased 26 per cent Y-o-Y to Rs 2.93 trillion at the end of Q3 while consolidated AUM was up 28 per cent Y-o-Y to Rs 3.98 trillion.

 

However, its loan loss provisions on a standalone basis increased 61 per cent Y-o-Y to Rs 2,008 crore.

 

In Q3, the net increase in Stage-2 and -3 assets of the lender was Rs 608 crore, it said, adding that net growth in Stage-2 and -3 has stabilised. Additionally, it said that Stage-2 assets increased by Rs 101 crore and Stage-3 by Rs 507 crore.

 

“The company continues to take proactive risk actions by cutting segments and pruning exposures,” it said.

 

The firm’s gross non-performing assets (NPA) ratio stood at 1.12 per cent and net NPA ratio stood at 0.48 per cent.

 

According to the company, its leverage analysis basis June 2024 bureau data suggests that customers having three or more live unsecured loans are showing higher propensity to default and lower collection efficiencies. As a result, the lender has reduced the share of such customers in new disbursements in line with pre-Covid levels.

 

“Good quarter on volumes, AUM and operational expenses. Loan losses have stabilised. Profit growth has begun to gain momentum. Return on assets was steady,” the company said.

 

Separately, the company said that the discontinuation of incremental sourcing of co-branded credit cards with RBL Bank and DBS Bank India will not affect existing cardholders, who will continue to receive services from the respective banks as usual. “The company earned distribution fees and a revenue share under the cobrand arrangement. The discontinuation will not impact the company’s future revenue share from this arrangement,” it said.

 

Additionally, it also stated that under its strategic partnership with Bharti Airtel, two products of Bajaj Finance have been piloted on the Airtel Thanks App. By March 2025, nine products of Bajaj Finance will be available to customers on the Airtel Thanks App. And, the lender and Airtel will enable more products through FY26.