Earnings Review
Strong growth in AUM, interest income lift Bajaj Fin PAT
This story was originally published at 18:59 IST on 24 July 2025
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--Bajaj Finance Apr-Jun consol net profit INR 47 bln
--Analysts saw Bajaj Finance Apr-Jun consol net profit at INR 46.14 bln
--Bajaj Finance Apr-Jun consol PAT INR 47 bln vs INR 39.12 bln year ago
--Bajaj Finance Apr-Jun consol revenue INR 195.24 bln vs INR 161.00 bln year ago
--Bajaj Finance consol gross NPA ratio 1.03% on Jun 30 vs 0.86% year ago
--Bajaj Finance consol net NPA ratio 0.50% on Jun 30 vs 0.38% year ago
--Bajaj Finance consol AUM at INR 4.415 tln as on Jun 30, up 25% YoY
--Bajaj Finance Apr-Jun consol net interest income INR 102.27 bln, up 22% YoY
--Bajaj Finance Jun 30 consol AUM INR 4.41 tln vs INR 3.54 tln year ago
--Bajaj Fin Q1 consol loan loss, provisions INR 21.20 bln vs INR 16.85 bln
--Bajaj Finance consol deposits at INR 721.09 bln as on Jun 30, up 15% YoY
By Kabir Sharma
MUMBAI – Robust revenue arising out of strong growth in assets under management helped Bajaj Finance report a 20.1% year-on-year increase in its consolidated net profit for the quarter ended June. A sharp rise in net interest income also helped bolster the financier's bottom line.
Bajaj Finance reported a net profit of INR 47.00 billion in the June quarter, beating the Street estimate of INR 46.14 billion. Shares of the company closed 1% lower at INR 958.95 on the National Stock Exchange. The earnings were announced just before the market closed.
The lender's assets under management rose 25% on year to INR 4.41 trillion as on Jun. 30, the non-banking finance company said. The company's assets under management increased by INR 247.50 billion during the quarter.
Bajaj Finance booked 13.49 million new loans in the June quarter against 10.97 million in the same quarter last year. The deposit book of the non-banking finance company grew 15% on year to INR 721.09 billion as on Jun. 30. The lender's customer franchise stood at 106.51 million as on Jun. 30, up from 88.11 million a year ago. In the June quarter, the franchise increased by 4.69 million.
Deposits contributed 19% of consolidated borrowings as of Jun. 30. To optimise cost of funds, the company is reducing reliance on deposits for the next 12 months, it said in its investor presentation.
The net interest income of the financier increased by 22% in Apr-Jun to INR 102.27 billion.
Credit costs were elevated, especially in the two-wheeler and micro, small and medium enterprises. "The company has taken significant credit actions in both these businesses and AUM growth for both these businesses will be low for FY26 (2025-26)," Bajaj Finance said. Loan losses and provisions were up 26% to INR 21.20 billion in Apr-Jun against INR 16.85 billion a year ago.
"Consumer leverage continues to remain an area of concern. The company has taken several actions across all products to reduce the contribution of customers with multiple loans," the company said. The gross non-performing asset ratio and the net non-performing asset ratio stood at 1.03% and 0.50%, respectively, as of Jun. 30 against 0.86% and 0.38% a year ago. These were amongst the lowest in the industry, the company said.
On the cost of funds, there was an improvement of 20 basis points from the previous quarter to 7.79% in Apr-Jun. The company expects the cost of funds to be within 7.60-7.65% for the rest of the current financial year.
The company added 85 standalone gold loan branches and four standalone microfinance branches in Apr-Jun. With this, the company had a total of 4,192 branches, along with 1,254 gold loan branches and 337 microfinance branches.
Among the subsidiaries, Bajaj Housing Finance Ltd. reported an AUM growth of 24% at INR 1.20 trillion on Jun. 30 compared with INR 970.71 billion a year ago. Within that, home loans AUM grew by 21%, loan against property grew by 30%, lease rental discounting grew by 29%, and developer finance grew by 32%. The company reported a profit after tax of INR 5.83 billion, up 21% on year.
Bajaj Financial Securities, which is a wholly owned subsidiary of Bajaj Finance, reported a 39% on year growth in AUM to INR 30.98 billion. The company reported a net profit of INR 410 million, up 37% on year. End
Edited by Saji George Titus
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