Bajaj Finance Q1 net profit rises 14%

24 Jul 2024 , 08:43 AM

Bajaj Finance announced its Q1 FY25 results on Tuesday, July 23. The company reported a 14% year-on-year increase in net profit, reaching ₹3,912 Crore. Net interest income (NII) for the April-June quarter grew by 25% year-on-year, amounting to ₹8,365 Crore.

The company resumed the sanction and disbursal of loans under ‘eCOM’ and ‘Insta EMI Card’ and began issuing EMI cards again after the RBI lifted restrictions on these businesses on May 2, 2024.

In its Q1 business update, Bajaj Finance reported:

• New loans grew by 10% during the quarter, reaching 1.1 Crore bookings.
• Assets under management (AUM) expanded by 31% year-on-year to ₹3.5 lakh Crore at the end of the quarter.
• The deposit book saw a 26% year-on-year increase, totaling ₹62,750 Crore for the quarter ended June.

Gross NPA and net NPA as of June 30, 2024, stood at:

• Gross NPA: 1.06% (compared to 1.09% as of June 30, 2023).
• Net NPA: 0.47% (compared to 0.39% as of June 30, 2023).

The company’s two and three-wheeler finance portfolio grew by 34%, reaching ₹19,689 Crore. There was a significant 157% increase in the car loan portfolio, which stood at ₹8,710 Crore. The urban B2C portfolio grew by 31% year-on-year, reaching ₹69,988 Crore.

Bajaj Finance Limited (BFL) is an Indian non-banking financial company headquartered in Pune. BFL is one of India’s leading NBFCs with a customer base of 83.64 million and assets under management worth ₹330,615 Crore (US$40 billion) as of March 2024.

According to the 2023 list of NBFCs issued by the Reserve Bank of India, Bajaj Finance Limited ranks second in the upper layer based on scale-based regulation guidelines. The company was initially incorporated as Bajaj Auto Finance Limited on March 25, 1987, focusing primarily on providing two and three-wheeler finance.

After 11 years in the auto finance market, Bajaj Auto Finance Ltd launched its initial public issue of equity shares and was listed on the Bombay Stock Exchange and National Stock Exchange of India.

At the turn of the 20th century, the company ventured into the consumer durables finance sector, offering small-size loans at zero interest rates. In subsequent years, Bajaj Auto Finance diversified into business and property loans as well.