Shares of Bajaj Finance jumped 4.6% to ₹7,723.95 apiece in early trade on Thursday after the company’s December quarter update, which was released on Wednesday. The update highlighted a significant 26% increase in loans booked during Q3 of FY24, bringing the total loans booked by the lender to 9.86 million, up from 7.84 million in Q3 FY23.
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The assets under management (AUM) experienced a remarkable 35% annual growth, surpassing the ₹3 lakh crore milestone and reaching approx ₹3,11,000 crore in Q3 FY24. During the quarter alone, the AUM increased approx ₹20,700 crore, according to the company’s stock exchange.
“AUM growth of 35% YoY suggests that the festive period has been strong for BAF and that it has successfully leveraged traditional channels (apart from digital / e-commerce) for newer customer acquisitions,” said domestic brokerage firm Motilal Oswal.
AUM growth despite ban on new client acquisitions
The brokerage stated that the company’s AUM growth stood strong despite the ban on new client acquisitions and new loans booked.
In November last year, the Reserve Bank of India (RBI) ordered Bajaj Finance Ltd. (BAF) to stop sanctioning and disbursing loans under its two loan products, ‘eCOM’ and ‘Insta EMI Card’.
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Meanwhile, Bajaj Finance customer franchise also witnessed a significant increase, with the number of customers increasing to 80.41 million in Q3 FY24 from 66.05 million in Q3 FY23. In the December quarter, the customer franchise increased by 3.85 million.
The company said its consolidated net liquidity surplus is approx ₹11,600 crore as on December 31, 2023, indicating a strong liquidity position. The book of deposits stood approx ₹58,000 crore in Q3 FY24, reflecting 35% year-on-year growth compared to ₹42,984 crore in Q3 FY23.
For the September quarter, the company reported a 27.68% jump in its standalone net profit at ₹3,551 crores. The company posted a net profit of ₹2,781 crore in the corresponding quarter last year. The total income from operations came in at ₹13,378 crore in Q2 FY24, a growth of 34.18% compared to ₹9,970 crore in the previous year.
At 10:15 AM, the stock was trading with a gain of 3.56% at ₹7,647.95 each.
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 04 Jan 2024, 10:17 IST