Bajaj Finance shares decline amid rising provisions, weakening asset quality

Mumbai, March 10 (IANS) Bajaj Finance shares faced selling pressure on Monday, falling by Rs 74.5 or 0.89 per cent to close at Rs 8,330.

The stock, which opened at Rs 8,437.75, saw an intra-day low of Rs 8,326 and a high of Rs 8,637.9.

This decline continues the downward trend of the past five sessions, during which the stock has lost nearly 3 per cent, shedding Rs 255.9.

Investor sentiment took a hit as concerns over the company’s rising provisions and deteriorating asset quality weighed on the stock.

In Q3 FY25, Bajaj Finance’s gross non-performing assets (GNPA) increased to 1.12 per cent from 0.95 per cent a year ago, while net non-performing assets (NNPA) rose to 0.48 per cent from 0.37 per cent.

Loan loss provisions surged significantly to Rs 2,043 crore, compared to Rs 1,248 crore in the same period last year.

The company’s net interest income (NII) recorded a 23 per cent YoY growth of 23 per cent, reaching Rs 9,382 crore in Q3, compared to Rs 7,655 crore in the same period last year.

Meanwhile, its assets under management (AUM) saw a substantial 28 per cent increase, rising to Rs 3.98 lakh crore as of December 31, 2024, from Rs 3.11 lakh crore a year earlier.

The AUM of the housing finance arm, Bajaj Housing Finance, increased by 26 per cent to Rs 1.08 lakh crore from Rs 85,929 crore a year ago. Its net interest income rose by 25 per cent to Rs 806 crore in Q3.

The asset quality of the housing finance arm remained stable, with GNPA at 0.29 per cent and NNPA at 0.13 per cent as of December 31, 2024.

While Bajaj Housing Finance, the company’s housing finance arm, reported a 25 per cent rise in profit after tax and stable asset quality, it was not enough to lift overall market confidence in Bajaj Finance shares.

–IANS

pk/vd