Q4 2025 Bajaj Finance Ltd Earnings Call Transcript

Apr 29, 2025 / 01:00PM GMT

Release Date Price: ₹908.93 (-0.03%)

Transcript

Key Points

Positve

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.
The company's AUM grew by 26% year-over-year, reaching INR 4,16,661 crore, indicating strong business growth.
The Bajaj Finserv app crossed 70 million customers, showcasing significant digital engagement.
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.
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

The company faced elevated credit costs, resulting in subdued profit growth, with a reported credit cost of 2.33% of average assets.
Net NPA increased to 44 basis points from 37 basis points a year ago, indicating some deterioration in asset quality.
The company had to make an additional ECL provision of INR 359 crore due to higher flow forward rates and elevated credit costs.
The ROE decreased to 19.1% from 20.5% a year ago, reflecting pressure on profitability.
Bajaj Finance Ltd (BOM:500034) experienced a marginal increase in the cost of funds, which came in at 7.99%, impacting net interest margins.

Operator

Ladies and gentlemen, good evening, and welcome to the Bajaj Finance Limited Q4 FY '25 Earnings Call hosted by Morgan Stanley. This event is not for members of the press. If you are a member of the press, please disconnect and reach out separately. For important disclosures, please see the Morgan Stanley disclosure website at www.morganstanley.com/researchdisclosures.

Please note that this call and your questions will be recorded and may in certain circumstances be distributed to clients and/or made publicly available. By participating in this event, you consent to such recording, distribution and publication. (Operator Instructions)

I will now hand the conference over to Mr. Subramanian Iyer from Morgan Stanley. Thank you, and over to you, sir.

Subramanian Iyer

Morgan Stanley - Analyst

Thank you, Kenneth. Good evening, everyone. This is Subramanian Iyer from Morgan Stanley. Thank you very much for joining us for the Bajaj Finance Q4 FY '25 Earnings

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