Bajaj Finance, released its business updates for the October-December quarter on January 3. The company reported strong growth across key metrics.
AUM and Deposits Surge
Bajaj Finance's assets under management (AUM) grew by 28% year-on-year (YoY) to ₹3.98 lakh crore as of December 31, 2024, compared to ₹3.10 lakh crore a year ago. During Q3 FY25, AUM increased by ₹24,100 crore. Additionally, its deposit book rose 19% YoY to ₹68,800 crore from ₹58,008 crore.
Record Loan Bookings and Customer Growth
The company recorded its highest-ever quarterly new loans booked at 12.06 million, up 22% from 9.86 million in Q3 FY24. The customer franchise expanded to 97.12 million, marking a significant increase from 80.41 million a year ago. Bajaj Finance added 5.03 million new customers during the quarter, the highest quarterly addition to date.
Brokerage Optimism and Share Performance
Global brokerage Citi reiterated its 'Buy' rating on Bajaj Finance, setting a target price of ₹8,150 and placing the stock under a 90-day positive catalyst watch. Citi highlighted stable loan growth. However, it flagged a marginal increase in credit costs, projected to rise to 2.2–2.25% for Q3 FY25, compared to the company’s FY25 guidance of 2.05%.
On January 2, Citi noted the company's proactive risk management measures, including selective exposure reductions, and emphasized the importance of updates on Bajaj Finance’s ongoing management transition for assessing its long-term prospects.
Following the brokerage's report, Bajaj Finance's share price surged over 5% on January 3. The stock, a top gainer on Sensex and Nifty, rose alongside Bajaj Finserv. Bajaj Finance’s relative strength index (RSI) stands at 52.5, signaling that the stock is neither overbought nor oversold. It has outperformed key moving averages, including 5-day, 10-day, 50-day, and 200-day averages.
Market and Volatility Indicators
As of the latest session, Bajaj Finance shares closed at ₹7,407, reflecting an 11% rise over the past month but a 1.32% decline over the past year. The stock has a one-year beta of 1.1, indicating high volatility. The firm’s market capitalization stood at ₹4.53 lakh crore, with a turnover of ₹69.86 crore from 0.96 lakh shares traded on the BSE.
Bajaj Finserv Performance
Similarly, shares of Bajaj Finserv climbed 8.92% to ₹1,717.45 on the BSE. The stock's RSI is at 38.6, indicating a neutral position in terms of overbought or oversold levels. Bajaj Finserv trades above all major moving averages and has a market cap of ₹2.73 lakh crore, with ₹29.41 crore turnover from 1.76 lakh shares traded.
Growth Drivers
Citi attributed Bajaj Finance’s growth to strong performance in mortgage financing, sales financing, securities lending, and new business ventures. It projected 6% quarter-on-quarter (QoQ) and 7% YoY growth in AUM, despite the anticipated rise in credit costs to 2.2–2.5% for Q3 FY25.
In summary, Bajaj Finance and Bajaj Finserv have demonstrated robust growth across AUM, deposits, and customer acquisition. With a positive outlook from brokerages and a strong stock market performance, both companies remain well-positioned for future expansion.
