Bajaj Finance shares fall over 5% as asset quality deteriorates, provisions surge in March quarter

Shares of the country's leading non-banking finance corporation (NBFC), Bajaj Finance, fell as much as 5.59% to hit an intraday low of ₹8,581.50 on the BSE a day after it reported a weak set of earnings for the March quarter (Q4 FY25) on Tuesday, April 29. Bajaj Finance's asset quality deteriorated while provisions and loan losses surged in the March quarter, leading to selling pressure in Bajaj Finance shares.

The Pune-based company's asset quality showed deterioration as its gross non-performing assets (NPAs), as a percentage of total advances, came in at 0.96% as against 0.85% in the same period last year.

Bajaj Finance’s net NPAs came in at 0.44% compared to 0.37% in the year-ago period.

The company's loan losses and provisions also surged in the March quarter, adding to bearish sentiment for the stock, analysts said. Bajaj Finance's loan losses and provisions in the March quarter jumped 77% annually to ₹2,329 crore as against ₹1,310 crore in the same period last year.

Meanwhile, Bajaj Finance reported a net profit of ₹4,480 crore in the January-March quarter, marking an upside of 17% from ₹3,824.53 crore in the same period last year.

Its net interest income (NII), or the difference between interest earned and interest expended, rose 22% to ₹9,807 crore from ₹8,013 crore in the year-ago period.

The company booked 1 crore in new loans in Q4 FY25, marking a 36% increase over 78.7 lakh loans in Q4 FY24. The surge reflects sustained demand across segments and continued digital expansion.

Bajaj Finance’s customer base grew to 10.18 crore as of March 31, 2025, up 22% from 8.36 crore a year ago. The company added 47 lakh new customers in the March quarter alone, cementing its leadership in retail lending.

Bajaj Finance's assets under management (AUM) jumped 26% annually to ₹4,16,661 crore from ₹3,30,615 crore. During Q4 FY25, AUM increased by ₹18,618 crore, underlining robust disbursement momentum and healthy portfolio growth.

The company's board also declared a special interim dividend of ₹12 per share, fuelled by the exceptional gain from the IPO listing of BHFL in September 2024. Additionally, a final dividend of ₹44 per share was recommended for FY25, up from ₹36 last year.

To further reward shareholders, the board approved a stock split and a bonus issue of four fully paid equity shares for every one share held, subject to shareholder approval.

As of 9:32 am, Bajaj Finance shares traded 5.32% lower at ₹8,606.20, underperforming the SENSEX, which was trading on a flat note.