Bajaj Finance shares gain 4.6% on strong Q3 update, AUM grows 35% YoY

Shares of jumped 4.6% to 7,723.95 apiece in early trade on Thursday following the company's December quarter update, which was released on Wednesday. The update highlighted a significant 26% YoY increase in loans booked during Q3 of FY24, bringing the total loans booked by the lender to 9.86 million, up from 7.84 million in Q3 FY23.

: The assets under management (AUM) experienced a remarkable 35% year over year growth, surpassing the 3 lakh crore milestone and reaching approximately 3,11,000 crore in Q3 FY24. During the quarter alone, the AUM increased by approximately 20,700 crore, according to the company's exchange filing.

"AUM growth of 35% YoY suggests that the festive period was strong was BAF and that it successfully leveraged traditional channels (except digital/e commerce) for newer customer acquisitions," said domestic brokerage firm Motilal Oswal. The brokerage stated that the company's AUM growth stood strong despite the ban on new customer acquisitions and new loans booked.

In November last year, the Reserve Bank of India (RBI) directed Bajaj Finance Ltd. (BAF) to stop sanctioning and disbursing loans under its two lending products, ‘eCOM’ and ‘Insta EMI Card'. : Meanwhile, Bajaj Finance customer franchise also witnessed a significant rise, with the number of customers increasing to 80.41 million in Q3 FY24 from 66.05 million in Q3 FY23.

In the December quarter, the customer franchise increased by 3.85 million. The company said its consolidated net liquidity surplus stood at approximately 11,600 crore as of December 31, 2023, indicating a strong liquidity position. The deposits book stood at approximately 58,000 crore in Q3 FY24, reflecting a 35% year over year growth compared to 42,984 crore in Q3 FY23.

For the September ending quarter, the company reported a 27.68% jump in its standalone net profit at 3,551 crore. The company posted a net profit of 2,781 crore in the corresponding quarter of last year. The total revenue from operations came in at 13,378 crore in Q2 FY24, a growth of 34.18% compared to 9,970 crore in the year ago quarter.

At 10:15 AM, the stock was trading with a gain of 3.56% at 7,647.95 apiece. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.