Bajaj Finance's Profitable Surge Amid Rising NPAs

Bajaj Finance reported an 18% increase in consolidated net profit for the December quarter, reaching Rs 4,308 crore. Total income rose to Rs 18,058 crore, while assets under management grew by 28%. However, gross non-performing assets increased to 1.12%. The company's provisioning coverage ratio fell to 57%.

Bajaj Finance posted an 18% rise in consolidated net profit, totaling Rs 4,308 crore for the December quarter, up from Rs 3,639 crore a year earlier. The company's total income climbed to Rs 18,058 crore from Rs 14,166 crore for the same period, according to a regulatory filing on Wednesday.

The lending giant's assets under management saw a notable 28% increase, reaching Rs 3,98,043 crore at the end of December 2024, compared to Rs 3,10,968 crore in the prior year. Furthermore, net interest income grew to Rs 9,382 crore from Rs 7,655 crore in the same timeframe.

Despite these gains, Bajaj Finance reported an uptick in gross non-performing assets, rising to 1.12% from 0.95% the previous year, while net NPAs also edged up to 0.48% from 0.37%. The company's provisioning coverage ratio dipped to 57% from 62% for stage 3 assets as of the end of December 2023.