Q2 2025 Bajaj Finserv Ltd Earnings Call Transcript
Key Points
- Bajaj Finserv Ltd (BOM:532978) reported a strong AUM growth of 29% year-on-year, reaching INR 374,000 crore.
- The company added nearly 4 million new customers in Q2, bringing the total customer base to 92.1 million.
- Net interest income grew by 23% to INR 8,838 crore, with overall net total income increasing by 24%.
- The company maintained a strong liquidity buffer of INR 20,200 crore, with a cost of funds at 7.97%, indicating financial stability.
- Bajaj Finserv Ltd (BOM:532978) received an investment-grade rating from Moody's, aligning with its sovereign rating, which enhances its credit profile.
- Loan losses remained elevated, with gross loan loss and provisions at INR 1,934 crore, impacting profitability.
- The net loan loss to average assets is expected to be higher than initially projected, between 2% and 2.05% for FY25.
- The company's deposit growth was slower than expected at 21%, due to a competitive pricing environment.
- Credit costs were a dampener for the quarter, with a net increase in Stage 2 and Stage 3 assets of INR 542 crore.
- The rural B2C and SME lending segments were highlighted as areas of concern, with elevated GNPA levels leading to cautious growth strategies.
Ladies and gentlemen, good day, and welcome to Bajaj Finance Limited Q2 FY25 earnings conference call hosted by JM Financial Institutional Securities Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Sameer Bhise from JM Financial. Thank you, and over to you, sir.
Thank you, Nirav. Good evening, everyone, and welcome to the 2Q FY25 Earnings Conference Call of Bajaj Finance. First of all, I would like to thank the management of Bajaj Finance for giving us the opportunity to host the call. From Bajaj Finance management team, we have Mr. Rajeev Jain, Managing Director; Mr. Anup Saha, Deputy Managing Director; Mr. Sandeep Jain, COO and CFO; as well as the entire senior management team of Bajaj Finance and its subsidiaries. As always, we will have opening comments from the management team post which we will open the floor for Q&A.
With that, I would now like to hand over to Mr. Rajeev Jain for his opening
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