- 30 Apr 2025
- ICICIdirect Research
BAJAJ FINANCE REPORTED A STABLE PERFORMANCE IN Q4FY25 WITH HEALTHY BALANCE SHEET GROWTH
News: Bajaj Finance reported a stable performance in Q4FY25 with healthy balance sheet growth, though asset quality saw mild pressure. AUM rose 26% YoY to ₹4,16,661 crore, driven by ~1.07 crore new loans, a 36% YoY rise. The customer base increased by 47 lakh during the quarter, taking the total to 10.18 crore. NII grew 22% YoY to ₹9,807 crore, despite 25 bps margin compression due to a 3 bps rise in cost of funds and a 22 bps impact from AUM mix change. Credit cost remained elevated at ₹2,329 crore, including ₹359 crore of additional ECL provisioning. As a result, PAT grew by 19% YoY to ₹4,546 crore. GNPA and NNPA rose slightly to 0.96% and 0.44%, respectively. Further, sub-division of 1:1 and bonus in the ratio of 1:4 has been announced.
View: While growth remained healthy, elevated slippages continue to impact profitability. Guidance maintained on growth with improvement expected in credit cost, though current valuations seem to factor in the revival.
Impact: Neutral