1 week Ago By Moneycontrol
Bajaj Finance, one of India's prominent non-banking financial companies (NBFC), released its October-December quarter business updates in an exchange filing late on January 3. The company’s assets under management (AUM) rose 28 percent year-on-year to Rs 3.98 lakh crore as of December 31, 2024, compared to Rs 3.
10 lakh crore a year ago. AUM grew by approximately Rs 24,100 crore during the third quarter of FY25. Also read: These 50 smallcaps gain between 10-40% as broader indices outperform As of December 31, 2024, its deposit book increased by 19 percent to Rs 68,800 crore, up from Rs 58,008 crore a year earlier.
The NBFC also reported its highest-ever quarterly new loans booked at 12.06 million in Q3 FY25, marking a 22 percent growth from 9.86 million in the same quarter last year.
The customer franchise expanded to 97.12 million by the end of December 2024, compared to 80.41 million a year ago.
The company achieved its largest-ever quarterly increase in customer franchise, adding 5.03 million new customers in Q3 FY25. On January 2, global brokerage Citi placed Bajaj Finance under a 90-day positive catalyst watch, maintaining a 'Buy' rating with a target price of Rs 8,150 per share.
Citi highlighted that the company’s revised credit cost guidance of 2.05 percent for FY25 is likely to slightly rise to 2.2–2.
25 percent for the December quarter. The NBFC has also taken proactive risk measures, including pruning exposures in specific segments. Read more: Looking ahead @ 2025: Gold may continue to sparkle, but focus on asset allocation, not past returns, say experts On Thursday, Bajaj Finance's share price surged over 5 percent after analysts at the brokerage Citi reiterated their 'Buy' rating on the stock.
The brokerage highlighted expectations of loan growth stability, supported by a 3-5 basis point (bps) positive bias in net interest margins (NIM). "Key support is coming from segments like mortgage financing, sales financing, and new business ventures," Citi noted in its report. It also flagged a marginal rise in credit costs, estimated between 2.
2 to 2.5 percent. Citi further emphasised that updates on the company's ongoing management transition would be crucial in assessing its long-term prospects.
During the previous session, Bajaj Finance shares closed little changed at Rs 7,407. The stock price has risen 11 percent in the past month. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.
com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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