Bajaj Finance’s shares dipped 2.5% to ₹6,560 on July 24 following its Q1FY25 earnings report, which revealed a 14% year-over-year growth in net profit and a 25% increase in net interest income.
The company achieved a 10% growth in new loans during the quarter, resulting in 1.1 crore bookings. Furthermore, Bajaj Finance’s assets under management saw a substantial 31% rise year-over-year, reaching ₹3.5 lakh crore. Its deposit book also grew by 26% compared to the same quarter last year, totaling ₹62,750 crore.
Bajaj Finance’s asset quality showed mixed results; while gross non-performing assets improved slightly from 1.09% to 1.06% year-over-year, net non-performing assets worsened slightly from 0.39% to 0.47%. The finance sector for two and three-wheelers grew by 34%, and the car loan portfolio impressively expanded by 157% to ₹8,710 crore.
In operational updates, Bajaj Finance resumed issuing EMI cards and approving loans under its ‘eCOM’ and ‘Insta EMI Card’ schemes after the central bank lifted previous restrictions in May. Additionally, its subsidiary, Bajaj Housing Finance, submitted a draft red herring prospectus for an IPO, currently under SEBI’s review.
Despite recent setbacks in its stock performance, Bajaj Finance has seen a 7.5% decline over the past month and a 13% drop over the past year. The current market price stands at ₹6,575.55 per share, with a market capitalization of ₹4.06 lakh crore. The stock’s price-to-equity ratio is 32.96, with a return on equity of 17.56%, showing its standing in the market relative to earnings.
