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Non-banking finance company (NBFC) major Bajaj Finance on Wednesday reported a 17 per cent year-on-year (y-o-y) rise in net profit for the quarter that ended December at ₹3,706 crore, led by stable core income growth.
The NBFC’s net interest income stood at ₹8,500 crore in Q3FY25, up 22 per cent y-o-y, while fee and commission income rose 16 per cent on-year to ₹1,431 crore. Assets under management (AUM) grew 26 per cent to ₹2.93 lakh crore as on December-end. The NBFC booked a total of 11.96 million new loans in Q3FY25, up 22 per cent from the previous year. Urban B2C loans account for ₹81,533 crore of overall loans at Bajaj Finance, while SME loans account for ₹46,827 crore.
The NBFC in Q3 announced a strategic partnership with Bharti Airtel, under which Airtel will offer Bajaj Finance’s retail and MSME products on its Airtel Thanks App and at its nation-wide network of stores in a seamless and secured manner.
Further, the NBFC has stopped incremental sourcing of co-branded credit cards with RBL Bank and DBS Bank India in Q3. “This decision will not affect existing cardholders, who will continue to receive services from the respective banks as usual. The company earned distribution fees and a revenue share under the co-brand arrangement. The discontinuation will not impact the company’s future revenue share from this arrangement,” the NBFC said in its investor presentation.
Gross and net non-performing asset (GNPA, NNPA) ratio of the NBFC rose to 1.41 per cent and 0.61 per cent in Q3 from 1.18 per cent and 0.46 per cent last year, respectively. Accordingly, loan loss and provisions rose to ₹2,008 crore in Q3 from ₹1,248 crore last year. The NBFC’s provisioning coverage ratio stood at 57 per cent on gross stage 3 assets or GNPAs.
The NBFC did not provide the exact figure for net interest margin (NIM), but said margin was stable in Q3.
Overall, on a consolidated basis, the NBFC expects AUM growth of 25-27 per cent in the long term, net profit growth of 23-24 per cent, GNPA ratio of 1.2-1.4 per cent, and return on asset between 4.6 and 4.8 per cent.
Published on January 29, 2025
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