Bajaj Finance Q3 FY25: Net Profit Grows 17% to Rs 4,247 Crore Amid Rising Provisions

Bajaj Finance Limited has reported its third-quarter results for FY 2024-25, meeting market expectations despite increased provisions and slight deterioration in asset quality.

Key Financial Metrics

The non-banking finance company delivered solid performance in key areas:

• Net Profit increased 17% to Rs 4,246.5 crore
• Net Interest Income grew 23% to Rs 9,382 crore
• Assets Under Management (AUM) expanded 28% to Rs 3.98 lakh crore
• Provisions rose significantly by 64% to Rs 2,043 crore

Asset Quality Metrics

The company experienced some pressure on asset quality parameters:

• Gross NPA ratio increased to 1.12% from 1.06% quarter-on-quarter
• Net NPA ratio rose marginally to 0.48% from 0.46%
• Provision Coverage Ratio stood at 57% as of December 31, 2024

Segment-wise AUM Performance

Strong Growth Segments

• Car Loans: Exceptional growth of 97% YoY to Rs 11,141 crore
• Gold Loans: Impressive growth of 81% YoY to Rs 7,267 crore
• Mortgages: Up 26% YoY to Rs 1.22 lakh crore
• Urban B2C Loans: Increased 35% YoY to Rs 83,143 crore

Other Key Segments

• SME Lending: Growth of 31% YoY to Rs 46,943 crore
• Rural B2C Loans: Increased 16% YoY to Rs 20,135 crore
• Two and Three-Wheeler Finance: Declined 2% to Rs 18,972 crore

Future Guidance and Outlook

Bajaj Finance has provided comprehensive long-term guidance:

• AUM Growth Target: 25-27%
• Profit Growth Target: 23-24%
• Expected Gross NPA Range: 1.2-1.4%
• Expected Net NPA Range: 0.4-0.5%
• Return on Assets Target: 4.6-4.8%
• Return on Equity Target: 21-23%

Additional Highlights

The company's deposit base showed healthy growth with deposits rising 19% to Rs 68,797 crore. The management noted that margins have stabilized at the end of the quarter, indicating stable operational performance.

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Categories: Bajaj Finance Q3 results, loan portfolio analysis, NBFC sector performance