Bajaj Finance Limited (BFL) recently held its 38th Annual General Meeting (AGM) on July 24, 2025, where shareholders voted on several important resolutions. The meeting, which took place at Hotel Hyatt Regency in Pune, saw significant participation from shareholders through both remote e-voting and voting at the venue.

Financial Statements and Dividend Approved

Shareholders overwhelmingly approved the adoption of standalone and consolidated financial statements for the fiscal year ended March 31, 2025, along with the Directors' and Auditors' reports. The resolution passed with 99.96% votes in favor. Additionally, the declaration of dividend for FY 2025 was approved with nearly unanimous support, receiving 99.99% of votes in favor.

Leadership Changes

A notable development was the resignation of Anup Kumar Saha from his positions as Managing Director and Director of the company. This resignation, accepted by the Board on July 21, 2025, rendered the agenda item for his re-appointment infructuous.

Appointment of Secretarial Auditor

M/s Makarand M. Joshi & Co., Practicing Company Secretaries, were appointed as the Secretarial Auditor of Bajaj Finance for a term of five consecutive years. This resolution was passed with 99.98% of votes in favor.

Approval for Non-Convertible Debentures

Shareholders gave their approval for the issuance of non-convertible debentures through private placement, with 98.69% of votes supporting this special resolution.

Material Related Party Transactions

Two resolutions regarding material related party transactions were passed:

1. Transactions between BFL and Bajaj Housing Finance Limited (BHFL) were approved with 99.99% votes in favor.
2. Transactions between BFL and Bajaj Allianz Life Insurance Company Limited (BALIC) also received 99.99% approval.

Employee Stock Option Scheme Modifications

Several resolutions related to the Employee Stock Option Scheme, 2009 were passed:

1. Modification to the scheme was approved with 98.71% votes in favor.
2. Extension of benefits and grant of options to employees of holding and/or subsidiary companies under the scheme received 94.95% approval.
3. Authorization for the Trust to acquire equity shares from the secondary market for implementing the scheme was passed with 99.70% votes in favor.

The AGM results reflect strong shareholder support for Bajaj Finance's strategic decisions and corporate actions. The company continues to maintain transparency and compliance with regulatory requirements, as evidenced by the high approval rates for these resolutions.

Bajaj Finance's commitment to good corporate governance and shareholder value is underscored by the successful conduct of this AGM and the positive response from its shareholders to these important resolutions.

Bajaj Finance , one of India's leading non-banking financial companies, reported a robust 22% year-on-year increase in consolidated profit after tax for the first quarter, despite facing headwinds from elevated credit costs.

Financial Highlights

• Consolidated profit after tax rose to ₹4,765.00 crore, up from ₹3,912.00 crore in the same quarter last year.
• Assets under management (AUM) grew by 25% to ₹441,450.00 crore.
• Net interest income increased by 22% to ₹10,227.00 crore.
• New loans booked during the quarter grew by 23% to 13.49 million.

Credit Quality and Provisions

Despite the strong top-line growth, Bajaj Finance faced challenges with credit quality:

• Gross Non-Performing Assets (GNPA) ratio increased to 1.03% from 0.86% a year ago.
• Net Non-Performing Assets (NNPA) ratio rose to 0.50% from 0.38% in the same period last year.
• Loan losses and provisions increased by 26% to ₹2,120.00 crore.
• The annualized credit cost to average AUM stood at 2.02%, exceeding the company's guided range of 1.85-1.95%.

Business Segment Performance

The company reported growth across various segments:

• Urban B2C loans grew by 29% year-on-year.
• MSME lending increased by 29%.
• Mortgages, including housing finance through subsidiary Bajaj Housing Finance, grew by 24%.

However, the two-wheeler and three-wheeler financing segment saw a 20% decline in AUM.

Subsidiary Performance

Bajaj Housing Finance Limited (BHFL) reported a 21% increase in profit after tax to ₹583.00 crore, with its AUM growing by 24% to ₹120,420.00 crore.

Management Commentary

Rajeev Jain, Vice Chairman and Managing Director, commented on the results: "Q1 was a balanced quarter with strong AUM growth of 25% and robust profitability. However, we remain cautious about the elevated credit costs, particularly in the MSME and two/three-wheeler segments."

Outlook and Strategic Moves

The company stated that this fiscal year will be defining for its FINAI (Financial Intelligence and Artificial Intelligence) transformation. Bajaj Finance has begun implementing AI capabilities across its operations to improve productivity and controllership.

In a significant management change, Anup Saha resigned as MD and Director effective July 21. The Board has entrusted Rajeev Jain with the responsibilities of managing the company, re-designating him as Vice Chairman and Managing Director until March 31, 2028.

Market Response

Following the results announcement, Bajaj Finance shares experienced volatility. The stock initially fell by over 6% to ₹897.65, erasing ₹38,000.00 crore in market value, as investors reacted to the higher-than-expected credit costs. Multiple brokerages, including UBS and JPMorgan, downgraded the stock citing concerns over credit quality and rich valuations.

Despite the challenges, some analysts remain optimistic about Bajaj Finance's long-term prospects. Jefferies maintained a Buy rating with a target price of ₹1,100.00, citing the company's healthy growth trajectory and strong market position.

As Bajaj Finance navigates through the current credit cycle and continues its technological transformation, investors and analysts will be closely watching its ability to manage credit costs while maintaining its growth momentum in the coming quarters.