Synopsis
Bajaj Finance Limited experiences a decline in share prices due to weak investor sentiment, with notable increases in non-performing assets and loan loss provisions. The firm, alongside its subsidiary Bajaj Housing Finance, navigates a challenging market landscape despite reporting growth in financial metrics.Key Takeaways
- Bajaj Finance shares dropped by 0.88%.
- Gross non-performing assets increased to 1.12%.
- Loan loss provisions surged to Rs 2,043 crore.
- Bajaj Housing Finance stock also faced challenges.
- Assets under management rose by 26% year-on-year.
Mumbai, April 9 (NationPress) Shares of Bajaj Finance Limited witnessed a decline on Wednesday, showcasing a lack of confidence among investors despite the absence of significant negative developments.
The stock experienced a decrease of Rs 77.25, which is a reduction of 0.88 percent, settling at Rs 8,745 on the National Stock Exchange (NSE) during the intra-day trading session. In the last five days, the share has retracted by Rs 5, equating to 0.06 percent.
The company disclosed an uptick in asset quality concerns during the third quarter of the fiscal year (Q3 FY25). Its gross non-performing assets (GNPA) rose to 1.12 percent from 0.95 percent in the same period last year, while net non-performing assets (NNPA) increased to 0.48 percent from 0.37 percent.
Furthermore, the provisions for loan losses surged significantly to Rs 2,043 crore in Q3, compared to Rs 1,248 crore in the corresponding quarter of the previous year.
In the meantime, Bajaj Housing Finance Limited, a subsidiary of Bajaj Finance, is also navigating a tough phase in the market.
The stock price dropped by Rs 4.07, which is 3.33 percent, over the past five trading sessions. It is currently priced at Rs 118.28, up slightly by Rs 0.26, or 0.22 percent, on Wednesday.
Over the course of a month, it has appreciated by Rs 2.95, or 2.56 percent. However, in the last six months, the share price has plummeted by Rs 36.99, representing nearly 24 percent.
Earlier this week, Bajaj Housing Finance hit the 10 percent lower circuit limit on Monday, closing at Rs 109.45 on the Bombay Stock Exchange (BSE).
This sharp downturn followed its Q4 FY25 business update. Notably, the stock reached a 52-week high of Rs 188.45 and a low of Rs 103.
Despite the market's reaction, Bajaj Housing Finance reported an improvement in its primary financial metrics. Disbursements for Q4 FY25 were at Rs 14,250 crore, up from Rs 11,393 crore year-on-year.
The company's assets under management (AUM) grew by 26 percent year-on-year to Rs 1,14,680 crore.
