Q2 2025 Bajaj Finance Ltd Earnings Call Transcript
Key Points
- Bajaj Finance Ltd (BOM:500034) reported a 29% year-on-year growth in Assets Under Management (AUM), indicating strong business expansion.
- The company added 4 million new customers in Q2, with an estimated total of 15 to 16 million new customers expected for FY25.
- Net Interest Income (NII) grew by 23% to INR8,828 crores, showing robust revenue generation.
- The company maintained a strong liquidity buffer of INR2,200 crores, ensuring financial stability.
- Bajaj Finance Ltd (BOM:500034) received an investment-grade rating from Moody's, enhancing its creditworthiness.
- Loan losses remained elevated, with gross loan loss and provisions at INR934 crores, impacting profitability.
- The cost of funds increased slightly to 7.97%, which could pressure margins if not managed effectively.
- Credit costs were a dampener for the quarter, with net loan loss to average assets expected to be between 2% and 2.5% for FY25.
- The company's deposit growth was slower than expected due to a competitive pricing environment.
- Stage 2 and Stage 3 assets saw a net increase of INR542 crores, indicating some deterioration in asset quality.
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 comments over to
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