Synopsis
Bajaj Finance shares dipped by Rs 74.5, or 0.89%, closing at Rs 8,330 due to rising provisions and declining asset quality. Despite an increase in net interest income and assets under management, investor sentiment remained low.Key Takeaways
- Bajaj Finance shares fell by Rs 74.5 (0.89%).
- Gross non-performing assets rose to 1.12%.
- Loan loss provisions increased to Rs 2,043 crore.
- Net interest income grew by 23% to Rs 9,382 crore.
- AUM surged by 28% to Rs 3.98 lakh crore.
Mumbai, March 10 (NationPress) Bajaj Finance shares experienced a downturn on Monday, decreasing by Rs 74.5 or 0.89 percent to finish at Rs 8,330.
The stock began trading at Rs 8,437.75 and reached an intra-day low of Rs 8,326 and a high of Rs 8,637.9.
This drop marks a continuation of the decline seen over the last five trading sessions, where the stock has lost close to 3 percent, equating to a loss of Rs 255.9.
Investor confidence diminished due to worries surrounding the company’s escalating provisions and weakening asset quality, impacting the stock’s performance.
In Q3 FY25, Bajaj Finance’s gross non-performing assets (GNPA) rose to 1.12 percent from 0.95 percent a year earlier, while net non-performing assets (NNPA) increased to 0.48 percent from 0.37 percent.
Loan loss provisions surged dramatically to Rs 2,043 crore, compared to Rs 1,248 crore in the same quarter last year.
The company's net interest income (NII) showed a remarkable growth of 23 percent year-on-year, reaching Rs 9,382 crore in Q3, compared to Rs 7,655 crore during the same period of the previous year.
Moreover, its assets under management (AUM) saw a considerable 28 percent increase, climbing to Rs 3.98 lakh crore as of December 31, 2024, from Rs 3.11 lakh crore a year prior.
The AUM of Bajaj Housing Finance, the company's housing finance division, grew by 26 percent to Rs 1.08 lakh crore from Rs 85,929 crore last year. Its net interest income also climbed by 25 percent to Rs 806 crore in Q3.
The asset quality of the housing finance sector remained steady, with GNPA at 0.29 percent and NNPA at 0.13 percent as of December 31, 2024.
While Bajaj Housing Finance demonstrated a 25 percent increase in profit after tax and maintained stable asset quality, this was insufficient to bolster overall market confidence in Bajaj Finance shares.
