Bajaj Finance's net profit jumps 13% YoY at ₹4,104 crore; Net interest income rises 23% YoY to ₹8,838 crore

During the quarter, the company reported robust growth in net interest income to ₹8,838 crore, up from ₹7,196 crore for the previous quarter. This was largely due to a 27% YoY jump in interest income to ₹14,987 crore compared to ₹11,733 crore. On the other hand, the finance cost rose sharply by 35% YoY at ₹6149 crore.

During the quarter, the company also received nearly ₹6,560 crore from the sale proceeds of its subsidiary Bajaj Housing Finance Ltd via public issue. The company sold nearly 93.7 crore shares through a mix of fresh issue and offer for sale. After Bajaj Housing Finance had been listed, the company's stake in the subsidiary was reduced from 100% to 88.75%.

The quarter's AUM stood at ₹373,924 crore, a growth of 29% YoY over the previous year's similar quarter period. During the quarter, the AUM grew by ₹19,732 crore.

The pre-provisioning profit for the quarter jumped by 25% YoY to ₹7,307 crore compared to ₹5,835 crore. However, after a steep rise in provisions for loan losses at ₹1909 crore, which was 77% higher than the previous year's similar quarter, the net profit after tax witnessed a 13% YoY growth at ₹4,014 crore for the Q2FY25.

On the asset quality front, Q2FY25 slightly deteriorated as the GNPA and NNPA increased to 1.06% and 0.46%, respectively, as against 0.91% and 0.31% for Q2FY24.

Ahead of the results, shares of Bajaj Finance closed 1.99% lower at ₹6,645 a piece on the NSE. On a YTD basis, Bajaj Finance shares provided negative returns of 8.7%, thereby largely underperforming the benchmark indices.