Bajaj Finance has announced a robust financial performance for the second quarter. The company reported a 23% increase in consolidated net profit, reaching ₹4,948 crore. This growth is up from ₹4,014 crore in the same period last year, showcasing strong momentum.
Total consolidated income also saw a significant rise. It climbed to ₹20,181 crore during the quarter, compared to ₹17,095 crore a year earlier. This indicates expanding revenue streams for the finance giant.
Net interest income jumped 22% to ₹10,785 crore. This is a substantial increase from ₹8,838 crore in the second quarter of the previous fiscal year, highlighting core earnings strength.
However, total expenditure increased to ₹13,576 crore. This compares to ₹11,697 crore in the year-ago period, reflecting higher operational costs.
Asset quality showed some deterioration. Gross non-performing assets rose to 1.24% of gross loans, up from 1.06% a year ago.
Net NPAs also increased to 0.6% from 0.46%. This indicates a slight rise in bad loans compared to the previous fiscal year.
Despite these challenges, the capital adequacy ratio stood at 21.23%. This includes Tier-II capital as of September 30, 2024, ensuring regulatory compliance.
Assets under management grew impressively by 24%. They reached ₹4,62,261 crore, up from ₹3,73,924 crore as of September 30, 2024.
The company’s subsidiaries include Bajaj Housing Finance Ltd and Bajaj Financial Securities Limited. These entities contribute to the diversified operations of the finance group.
Associate companies like Snapwork Technologies and Pennant Technologies also play a role. They support the broader strategic initiatives of Bajaj Finance.
The overall performance underscores the resilience of Bajaj Finance. Even with increased expenditures and asset quality pressures, profit growth remains strong.
Investors are likely watching these developments closely. The finance sector often reflects broader economic trends, making these results significant.
Future quarters will reveal if this growth trajectory can be maintained. Market conditions and regulatory changes will be key factors to monitor.
For now, Bajaj Finance continues to demonstrate its market leadership. The numbers tell a story of expansion and challenge in equal measure.