Bajaj Finance Q1 FY25 results: Consolidated net rises 14% to Rs 3,912 crore

Loan losses & provisions up 69% on muted collection efficiencies

Non-banking finance company Bajaj Finance reported 14 per cent year-on-year growth in its consolidated net profit to Rs 3,912 crore in the April-June period, helped by healthy growth in net interest income (NII).

NII expanded by 25 per cent year-on-year to Rs 8,365 crore, up from Rs 6,717 crore in the same period of the previous year.

In Q1 FY25, the cost of funds was 7.94 per cent, an increase of eight basis points (bps) over the January-March quarter (fourth quarter) of FY24. The net interest margin (NIM) compressed in Q1 FY25 over Q4 FY24 by 23 bps. Of this, 13 bps movement was due to cost of funds and 10 bps movement was due to AUM composition, Bajaj Finance said in an analyst presentation.

 

Its fees and commission income rose 14 per cent year-on-year to Rs 1,524 crore in Q1 FY25.

Bajaj Finance stock closed 2.18 per cent lower at Rs 6,732.2 per share on the BSE. Its capital adequacy ratio (CAR) stood at 21.65 per cent with Tier I of 20.73 per cent as of June 30, 2024.

Its assets under management (AUM) grew by 31 per cent to Rs 3.54 trillion as of June 30, 2024, from Rs 2.70 trillion as of June 30, 2023.

The company clocked the quarterly AUM growth of Rs 23,577 crore in Q1 FY25. New loans booked were up 10 per cent to 10.97 million in Q1, compared with 9.94 million in Q1 FY24.

The deposit book grew by 26 per cent year-on-year and stood at Rs 62,774 crore as of June 30, 2024. Deposits contributed to 20 per cent of consolidated borrowings as of June 30, 2024.

Bajaj Finance, in a statement, said loan losses and provisions for Q1 FY25 were Rs 1,685 crore, up from Rs 995 crore in Q1 FY24. Loan losses and provisions in Q1 were elevated primarily on account of muted collection efficiencies.

The company was augmenting its debt management infrastructure as a mitigation measure. It remains watchful across portfolios and proactively pruning segments, Bajaj Finance said.