In This Article:
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AUM Growth: INR18,618 crore to INR4,16,661 crore, a growth of 26%.
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Loans Booked: 10.7 million loans in Q4.
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New Customers Added: 4.7 million new customers.
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Customer Franchise: Just below 102 million.
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PBT Growth: 11% at INR5,647 crore.
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PAT Growth: 19% at INR4,546 crore.
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ROE: 19.1% versus 20.5% a year ago.
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Net NPA: 44 basis points.
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Cost of Funds: 7.99%, a marginal increase of 3 basis points.
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Deposits Book Growth: 19% on a consolidated basis.
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Net Interest Margin (NIM) Growth: 22%.
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Net Total Income Growth: 23%.
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Employee Headcount: 64,000 people.
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Attrition Rate: 16.8% for the year.
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Loan Loss and Provisions: INR2,329 crore, with an additional provision of INR359 crore.
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GNPA: 96 basis points.
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Capital Adequacy: 21.93% with Tier 1 at 21.09%.
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BHFL AUM Growth: 26%.
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BHFL PAT Growth: 54%.
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BHFL ROA: 2.4%.
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MTF AUM Growth: 18%.
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MTF Total Income Growth: 107%.
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MTF PAT Growth: 64%.
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FY '25 PAT Growth: 16% to INR16,779 crore.
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FY '25 ROE: 19.2%.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bajaj Finance Ltd (BOM:500034) reported a record booking of 10.7 million loans in Q4, adding 4.7 million new customers, bringing the total customer base to just below 102 million.
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The company's AUM grew by 26% year-over-year, reaching INR 4,16,661 crore, indicating strong business growth.
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The Bajaj Finserv app crossed 70 million customers, showcasing significant digital engagement.
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The company announced a subdivision of face value of shares and a 4:1 bonus share issue, reflecting strong financial health and shareholder value creation.
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Bajaj Finance Ltd (BOM:500034) maintained a strong capital adequacy ratio of 21.93%, with Tier 1 capital at 21.09%, indicating a robust financial position.
Negative Points
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The company faced elevated credit costs, resulting in subdued profit growth, with a reported credit cost of 2.33% of average assets.
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Net NPA increased to 44 basis points from 37 basis points a year ago, indicating some deterioration in asset quality.
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The company had to make an additional ECL provision of INR 359 crore due to higher flow forward rates and elevated credit costs.
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The ROE decreased to 19.1% from 20.5% a year ago, reflecting pressure on profitability.
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Bajaj Finance Ltd (BOM:500034) experienced a marginal increase in the cost of funds, which came in at 7.99%, impacting net interest margins.
Q & A Highlights
Q: Can you provide more detail on the AUM growth expectations for FY '26 and the current NIM situation? A: Anup Saha, Managing Director, explained that Bajaj Finance remains small in terms of market share, with growth expected across all business lines, including new secured businesses like gold loans. The company anticipates stable NIMs for FY '26, despite some moderation in unsecured business pricing, due to expected benefits from a 10-15 basis point reduction in the cost of funds.