Bajaj Finance shares decline amid weak investor sentiment

IANS April 9, 2025 205 views

Bajaj Finance shares experienced a decline on Wednesday, reflecting weak investor sentiment. The company reported an increase in gross non-performing assets from 0.95% to 1.12% in the third quarter. Loan loss provisions significantly rose to Rs 2,043 crore, up from Rs 1,248 crore in the previous year. Despite market challenges, the company's assets under management grew 26% year-on-year to Rs 1,14,680 crore.

"Market sentiment reflects growing concerns about asset quality" - Financial Analyst
Mumbai, April 9: Bajaj Finance Limited's shares fell on Wednesday, reflecting weak investor sentiment despite no major negative triggers.

Key Points

1

Bajaj Finance GNPA rises to 1.12% from 0.95% year-on-year

2

Loan loss provisions jump to Rs 2,043 crore

3

Housing finance subsidiary faces stock market challenges

4

AUM grows 26% year-on-year to Rs 1,14,680 crore

The stock dropped by Rs 77.25, or 0.88 per cent, to close at Rs 8,745 on the National Stock Exchange (NSE) during an intra-day session. Over the past five days, the scrip has slipped by Rs 5, or 0.06 per cent.

The firm reported a rise in asset quality stress in the third quarter of the fiscal year (Q3 FY25). Its gross non-performing assets (GNPA) increased to 1.12 per cent from 0.95 per cent in the year-ago period, while net non-performing assets (NNPA) rose to 0.48 per cent from 0.37 per cent.

Additionally, loan loss provisions jumped sharply to Rs 2,043 crore in Q3, up from Rs 1,248 crore in the same quarter last year.

Meanwhile, Bajaj Housing Finance Limited, a subsidiary of Bajaj Finance, is also facing a challenging time on the bourses.

The stock price was down by Rs 4.07, or 3.33 per cent, over the last five trading sessions. It currently trades at Rs 118.28, up marginally by Rs 0.26, or 0.22 per cent, on Wednesday.

Over a one-month period, it has gained Rs 2.95, or 2.56 per cent. However, in the last six months, the share price has plunged by Rs 36.99, or nearly 24 per cent.

Earlier this week, Bajaj Housing Finance hit the 10 per cent lower circuit limit on Monday, closing at Rs 109.45 on the Bombay Stock Exchange (BSE).

The sharp fall came after the company released its Q4 FY25 business update. Notably, the stock had a 52-week high of Rs 188.45 and a low of Rs 103.

Despite the market reaction, Bajaj Housing Finance reported growth in its key financial metrics. Disbursements in Q4 FY25 stood at Rs 14,250 crore, up from Rs 11,393 crore in the same quarter last year.

The company’s assets under management (AUM) rose 26 per cent year-on-year (YoY) to Rs 1,14,680 crore.

Reader Comments

R
Rahul K.
Not surprised by this dip at all. The rising NPAs tell the real story here. Bajaj Finance needs to tighten their credit policies before things get worse. Still a solid company long-term though.
P
Priya M.
The market is overreacting as usual! Look at those AUM numbers - 26% YoY growth is fantastic. This is just a temporary blip. 💪
A
Amit S.
Been holding Bajaj Finance for 5 years. These short-term fluctuations don't bother me. Their fundamentals remain strong despite the NPA increase.
S
Sanjay R.
The housing finance subsidiary's performance is concerning. 24% drop in 6 months is no joke. Might be time for management to rethink their strategy there.
N
Neha P.
Interesting to see how the parent company and subsidiary are moving differently. Bajaj Finance down slightly while Housing Finance is getting hammered. 🤔

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Tags:
Bajaj Finance Stock Market Non-Performing Assets Financial Services Q3 FY25 Results
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