Bajaj Finance Limited, one of India's leading non-banking financial companies, has reported strong financial performance for the first quarter. The company's consolidated profit after tax grew by 22% year-on-year to ₹4,765.00 crore, while its assets under management (AUM) increased by 25% to ₹441,450.00 crore.

Key Financial Highlights

Business Performance

Bajaj Finance demonstrated robust growth across various business segments. The company booked 13.49 million new loans during the quarter, representing a 23% increase from the same period last year. Its customer franchise expanded to 106.51 million, growing by 21% year-on-year.

The company's AUM growth was driven by strong performance across multiple lending categories. Notable growth was observed in segments such as urban B2C loans (29% YoY), MSME lending (29% YoY), and mortgages (24% YoY).

Asset Quality and Capital Adequacy

Bajaj Finance maintained a healthy asset quality profile:

The company's capital position remained strong, with a capital adequacy ratio (CRAR) of 21.96% as of the end of the quarter. The Tier-I capital stood at 21.19%.

Subsidiary Performance

Bajaj Housing Finance Limited (BHFL), a subsidiary of Bajaj Finance, reported a 21% increase in profit after tax to ₹583.00 crore. BHFL's AUM grew by 24% to ₹120,420.00 crore.

Bajaj Financial Securities Limited (BFinsec) saw its profit after tax rise by 37% to ₹41.00 crore, with assets under finance growing by 39% to ₹6,098.00 crore.

Management Changes

The company announced that Anup Saha resigned as Managing Director, effective July 21, for personal reasons. The Board re-designated Rajeev Jain as Vice-Chairman and Managing Director, entrusting him with the operating responsibilities of the company until March 31, 2028.

Outlook

Bajaj Finance's strong quarterly performance reflects its resilient business model and ability to capitalize on market opportunities. The company's focus on diversified lending segments and robust risk management practices positions it well for continued growth in the coming quarters.

As India's economy continues to recover and credit demand rises, Bajaj Finance is well-positioned to leverage its strong market presence and digital capabilities to drive further expansion in its customer base and loan portfolio.

Bajaj Finance Limited (BFL) has reported a strong start to the fiscal year, with a 22% year-on-year increase in consolidated profit after tax for the first quarter. The company's financial results, released on July 24, showcase robust growth across key metrics and outline ambitious plans for future expansion.

Financial Highlights

For Q1, Bajaj Finance posted a consolidated profit after tax of ₹4,765.00 crore, up from ₹3,912.00 crore in the same quarter last year. The company's assets under management (AUM) grew by 25% to reach ₹441,450.00 crore as of June 30, compared to ₹354,192.00 crore a year earlier.

Key financial indicators for Q1 include:

• Net interest income: ₹10,227.00 crore (up 22% YoY)
• Net total income: ₹12,610.00 crore (up 21% YoY)
• Pre-provisioning operating profit: ₹8,487.00 crore (up 22% YoY)
• New loans booked: 13.49 million (up 23% YoY)

Customer Franchise and Business Growth

Bajaj Finance continues to expand its customer base significantly. The company's customer franchise stood at 106.51 million as of June 30, representing a 21% increase from 88.11 million a year ago. During Q1, BFL added 4.69 million new customers to its franchise.

Asset Quality and Capital Adequacy

The company maintained a strong asset quality profile:

Bajaj Finance's capital position remains robust, with a capital adequacy ratio (CRAR) of 21.96% as of June 30, including Tier-I capital of 21.19%.

Strategic Developments

During the quarter, Bajaj Finance completed a significant corporate action. On June 16, the company subdivided its shares, reducing the face value from ₹2.00 to ₹1.00 per fully paid equity share. This was followed by a bonus issue on June 17, where shareholders received four fully paid bonus equity shares for every one equity share held.

Management Changes

In a notable leadership change, Anup Saha resigned as MD and Director of BFL on July 21. To ensure continuity, the Board re-designated Rajeev Jain as Vice Chairman and Managing Director, entrusting him with the company's management responsibilities until March 31, 2028.

Future Outlook

Bajaj Finance has set an ambitious target to reach 130 million customers by FY29. The company plans to achieve this growth through technology-driven cross-selling to affluent customers, targeting 26% deposit growth, and monetizing its platform through Bajaj Pay. These initiatives are part of BFL's strategy to drive its next phase of scale and profitability.

Rajeev Jain, Vice Chairman and Managing Director of Bajaj Finance, commented on the results: "We have delivered a strong start with robust growth across our key metrics. Our focus on customer acquisition, coupled with our strategic initiatives in technology and cross-selling, positions us well to achieve our long-term goals."

As Bajaj Finance continues to navigate the evolving financial landscape, its strong Q1 performance and strategic initiatives demonstrate the company's resilience and growth potential in the coming years.