Bajaj Finance Ltd (BFL) has announced robust financial results for the second quarter of fiscal year 2025, demonstrating strong growth across key metrics. The company’s consolidated profit after tax rose by 13 per cent year-on-year to ₹4,014 crore, compared to ₹3,551 crore in Q2 FY24. BFL reported a surge of 80 per cent in standalone net profit to ₹5,614 crore, compared to ₹3,105.75 crore in the corresponding period last year.
Bajaj Finance’s assets under management (AUM) saw a significant 29 per cent increase, reaching ₹373,924 crore by September 30, 2024, up from ₹290,264 crore in the same period last year.
During Q2 FY25, the company booked 9.69 million new loans, reflecting a 14 per cent increase from the 8.53 million loans booked in Q2 FY24. The customer franchise grew by 20 per cent year-on-year, adding nearly 16 million customers, with the total customer base reaching 92.09 million by the end of the quarter.
Strong financial performance
Bajaj Finance’s net interest income increased by 23 per cent to ₹8,838 crore, up from ₹7,196 crore in Q2 FY24. The company’s net total income also surged by 24 per cent, totaling ₹10,946 crore. Meanwhile, pre-provisioning operating profit saw a healthy 25 per cent jump, reaching ₹7,307 crore compared to ₹5,835 crore last year.
Loan losses and provisions, however, increased significantly, rising to ₹1,909 crore from ₹1,077 crore in Q2 FY24, indicating a cautious approach toward potential risks.
Subsidiary highlights
Bajaj Housing Finance Ltd (BHFL) showed remarkable growth with assets under management increasing by 26 per cent to ₹102,569 crore.
In Q2 FY25, BHFL concluded its Initial Public Offer (IPO) for 937, 142,856 equity shares of ₹10 each, comprising a fresh issue of 508,571 ,428 equity shares and 428,571 ,428 equity shares offered for sale by the parent, namely BFL. The equity shares were issued at a price of ₹ 70 per equity share totaling to ₹6,560 crore. BHFL’s equity shares got listed on National Stock Exchange of India and on SSE Ltd on 16 September 2024.
Bajaj Financial Securities Ltd. (BFinsec) also reported impressive gains, with its margin trade financing (MTF) book growing by 164 per cent to ₹5,430 crore. BFinsec’s profit after tax soared by 185 per cent to ₹37 crore, as compared to ₹13 crore in Q2 FY24.
Credit Ratings and outlook
Bajaj Finance enjoys the highest credit ratings of AAA/Stable for its long-term debt from leading agencies, including CRISIL, ICRA, and CARE. Additionally, the company received an international rating of Baa3/P-3 from Moody’s, marking its strong position in both local and global markets.
Looking ahead
With its strong financial results, Bajaj Finance continues to expand its customer base and enhance its loan portfolio. The company’s capital adequacy ratio stood at a healthy 21.69 per cent, positioning it well for future growth.
