Bajaj Finance Q2 Results: Net profit surges 80% to ₹5,613 crore, AUM rises 29% YoY; 5 key highlights

Bajaj Finance Q2 Results: Bajaj Finance announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Tuesday, October 22, reporting 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. The non-banking financial company (NBFC)'s total revenue from operations on a standalone basis in the second quarter of the current fiscal rose 27 per cent to ₹14,487.43 crore, compared to ₹11,410.28 crore in the year-ago period.

On a consolidated basis, the leading NBFC's net profit rose 13 per cent to ₹4,014 crore in the September quarter, compared to ₹3,551 crore in the same period last year. The consolidated numbers include the NBFC's subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities. Bajaj Finance reported a smaller-than-expected profit as it set aside more funds for potential bad loans.

Also Read: Bajaj Finance continues to tighten checks for those with multiple unsecured loans, says Rajeev Jain

Here are 5 key highlights of Bajaj Finance Q2 Scorecard

1.P&L Account: NII, expenses

The NBFC's total consolidated income increased to ₹17,095 crore during the quarter under review, as against ₹13,382 crore in the same period a year earlier. The Pune-headquartered company's total expenditure rose to ₹11,697 crore, compared to ₹8,624 crore in the year-ago period.

The consolidated net interest income (NII) —the difference between interest earned and paid—increased by 23 per cent in Q2FY25 to ₹8,838 crore from ₹7,196 crore in the year-ago period. On a standalone basis, the NII rose 23 per cent in Q2FY25 to ₹8,054 crore from ₹6,532 crore in Q2FY24.

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2.AUM, loan growth

On a standalone basis, the assets under management (AUM) grew 28 per cent to ₹275,043 crore as of 30 September 2024 from ₹214,891 crore as of 30 September 2023. On a consolidated basis, the number of new loans booked grew by 14 per cent in Q2 FY25 to 9.69 million compared to 8.53 million in Q2 FY24.  Consolidated AUM grew by 29 per cent to ₹373,924 crore in the September quarter from ₹290,264 crore as of 30 September 2023. Hence, the consolidated AUM grew by ₹19,732 crore in the September quarter.

3.Asset Quality

Asset quality worsened, with gross non-performing assets (NPAs) rising to 1.06 per cent of the gross loans by the end of September 2024 from 0.91 per cent a year ago. Similarly, net NPAs, or bad loans, also increased to 0.46 per cent from 0.31 per cent at the end of the second quarter of the previous fiscal year. The capital adequacy ratio or CAR (including Tier-II capital) as of September 30, 2024 was 21.69 per cent. Tier-1 capital was 20.9 per cent.

4.Lead indicators

Deposits book grew by 21 per cent year-on-year and stood at ₹66,131 crore as of 30 September 2024. In Q2, deposits book growth was ₹3,357 crore. Deposits contributed to 20 per cent of consolidated borrowings as of 30 September 2024. Employee headcount stood at 59,352 (BFL, BHFL & BFinsec) as of 30 September 2024. The NBFC added 4,007 employees in Q2. The annualised attrition as of 30 September 2024 was 16.4 per cent.

Also Read: Bajaj Housing Finance Q2 results: Net profit soars 21% to ₹546 crore
 

5.Subsidiaries

The company's subsidiary Bajaj Housing Finance Ltd (BHFL) successfully concluded its Initial Public Offer (IPO) of ₹6,560 crore. This included issuance of new equity shares amounting to ₹3,560 crore and an offer-for-sale by Bajaj Finance Ltd (BFL) amounting to ₹3,000 crore. BHFL equity shares were listed on stock exchanges on September 16, 2024. Consequently, BFL's shareholding in BHFL reduced from 100 per cent to 88.75 per cent.a