Strong Q4 Performance

Bajaj Finance , one of India's leading non-banking financial companies (NBFCs), has reported impressive growth figures for the fourth quarter of fiscal year 2025, while also facing regulatory scrutiny from the Reserve Bank of India (RBI).

According to the company's latest filing, Bajaj Finance witnessed substantial growth across key metrics in Q4 FY25:

The company's Assets Under Management (AUM) grew by 26.00% year-on-year to ₹4,16,750.00 crore as of March 31, 2025, compared to ₹3,30,615.00 crore in the previous year. In Q4 FY25 alone, the AUM increased by approximately ₹18,700.00 crore.

Bajaj Finance's new loan bookings saw a significant uptick, growing by 36.00% to 10.70 million in Q4 FY25, up from 7.87 million in the same quarter of the previous year. This robust growth in new loans indicates strong demand for the company's financial products and services.

Expanding Customer Base

The company's customer franchise expanded to 101.82 million as of March 31, 2025, compared to 83.64 million a year earlier, representing a 22.00% increase. In Q4 FY25 alone, Bajaj Finance added 4.70 million new customers to its franchise, highlighting its continued ability to attract and retain clients in a competitive market.

Deposit Growth

Bajaj Finance's deposit book also showed healthy growth, standing at ₹71,400.00 crore as of March 31, 2025. This represents a 19.00% increase from ₹60,151.00 crore reported on March 31, 2024, indicating strong investor confidence in the company's financial stability.

RBI Compliance Notice

While Bajaj Finance reported strong financial performance, the company also faced regulatory scrutiny. The Reserve Bank of India (RBI) issued a 'letter of displeasure' to the company, citing compliance gaps in its co-branded credit card business. This development underscores the importance of maintaining strict regulatory compliance in the financial services sector, even for well-established players like Bajaj Finance.

Debt Issuance

In a separate announcement, Bajaj Finance disclosed the allotment of secured redeemable non-convertible debentures (NCDs) worth ₹5,994.43 crore on a private placement basis. The company issued two options of NCDs with tenures of 10 years and 5 years, carrying interest rates of 7.55% and 7.57% per annum, respectively. This debt issuance is likely aimed at supporting the company's growth initiatives and maintaining a robust liquidity position.

As Bajaj Finance continues to navigate the dynamic financial services landscape, investors and stakeholders will be closely watching how the company addresses the compliance concerns raised by the RBI while maintaining its growth trajectory in the coming quarters.

Bajaj Finance Limited , one of India's leading non-banking financial companies, has reported impressive growth figures for the fourth quarter of fiscal year 2025, showcasing its strong market position and continued expansion in the financial services sector.

Strong AUM Growth

The company announced that its Assets Under Management (AUM) grew by a substantial 26% year-over-year, reaching approximately ₹4.17 lakh crore as of March 31, 2025. This marks a significant increase from the previous fiscal year. In the fourth quarter alone, Bajaj Finance's AUM expanded by approximately ₹18,700.00 crore, indicating robust business momentum.

Surge in New Loan Bookings

Bajaj Finance witnessed a remarkable 36% growth in new loan bookings during Q4 FY25. The company booked 10.70 million new loans in the quarter, compared to 7.87 million in the same period last year. This substantial increase in new loan acquisitions underscores the company's strong market penetration and customer acquisition strategies.

Expanding Customer Base

The customer franchise of Bajaj Finance saw significant expansion, reaching 101.82 million as of March 31, 2025. This growth highlights the company's increasing appeal among consumers and its successful efforts in customer acquisition.

Deposit Book Growth

Bajaj Finance's deposit book also showed healthy growth, standing at approximately ₹71,400.00 crore as of March 31, 2025. This represents a 19% increase year-over-year, reflecting strong investor confidence in the company.

Strategic Debt Issuance

In a separate announcement, Bajaj Finance disclosed the allotment of Secured Redeemable Non-Convertible Debentures (NCDs) worth ₹5,994.43 crore on a private placement basis. The issuance comprises two options:

These NCDs are set to be listed on the Wholesale Debt Market Segment of BSE Limited, with interest payable annually and on maturity.

Regulatory Notice

It's worth noting that the Reserve Bank of India (RBI) has issued a 'letter of displeasure' to Bajaj Finance over compliance gaps in its co-branded credit card business. This development highlights the importance of maintaining strict regulatory compliance in the financial services sector.

Conclusion

Despite the regulatory notice, the strong performance in Q4 FY25 and the successful debt issuance underscore Bajaj Finance's robust financial position and its ability to capitalize on market opportunities. As the company continues to expand its customer base and diversify its product offerings, it remains well-positioned for sustained growth in the competitive financial services landscape. However, addressing the compliance issues raised by the RBI will be crucial for maintaining investor confidence and regulatory goodwill going forward.