Wednesday, Apr 30 2025 | Time 11:45 Hrs(IST)
Business Economy


Bajaj Finance posts strong FY25, net profit rises 17 pc

Mumbai, Apr 29 (UNI) Bajaj Finance Ltd capped off FY25 with a robust financial performance, reporting a 17% year-on-year rise in consolidated net profit to Rs 4,480 crore for the March quarter.
Revenues climbed in lockstep, also up 17%, reaching Rs 18,457 crore. The lender's consistent double-digit growth across profit, revenue, and assets under management paints a picture of a non-bank finance company (NBFC) in strong health, supported by solid demand for credit.
Its assets under management (AUM) surged 26%, driven by buoyant loan demand, while new loan bookings jumped 36% from a year ago. Net interest income — the key indicator of a lending business’s core strength — rose 22% to Rs 9,807 crore. Capital adequacy remains comfortable, with a consolidated CRAR of 21.93%, well above regulatory requirements, indicating a strong cushion for future expansion or shocks.
Reflecting confidence in its financial standing, the company announced a Rs12 per share special dividend and a Rs 44 per share final dividend, along with a 4:1 bonus share issue. The special dividend stems from the gain realised on the IPO of Bajaj Housing Finance Ltd in September 2024.
However, the company also flagged “elevated credit costs” as a dampener on overall profit growth. Provisions for bad loans jumped nearly 78% to Rs 2,329 crore in the March quarter, mainly due to stress in the unsecured lending portfolio — a key area the market is watching closely. While the company added 18.18 million new customers and disbursed over 43 million loans during the year, rising defaults in certain segments could pressure margins going forward.
In its investor presentation, Bajaj Finance described FY25 as a “mixed year” — excellent in terms of volumes and operational metrics, but challenging on asset quality. UNI BDN SSP
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