Shares of Bajaj Finance witnessed a robust uptick of 4.6%, reaching ₹7,723.95 in early trade on Thursday, buoyed by the company's impressive Q3 update released on Wednesday. The report revealed a substantial 26% year-over-year increase in loans booked during the third quarter of FY24, elevating the total loans booked by the lender to an impressive 9.86 million, a noteworthy surge from 7.84 million in Q3 FY23.
One of the standout metrics in the update was the remarkable growth in Assets Under Management (AUM), which experienced a staggering 35% year-over-year surge. This propelled the AUM past the ₹3 lakh crore milestone, reaching an impressive ₹3,11,000 crore in Q3 FY24. During the quarter alone, AUM expanded by approximately ₹20,700 crore, as per the company's filing with the stock exchange.
Shares of Bajaj Finance witnessed a robust uptick of 4.6%, reaching ₹7,723.95 in early trade on Thursday, buoyed by the company's impressive Q3 update released on Wednesday. The report revealed a substantial 26% year-over-year increase in loans booked during the third quarter of FY24, elevating the total loans booked by the lender to an impressive 9.86 million, a noteworthy surge from 7.84 million in Q3 FY23.
One of the standout metrics in the update was the remarkable growth in Assets Under Management (AUM), which experienced a staggering 35% year-over-year surge. This propelled the AUM past the ₹3 lakh crore milestone, reaching an impressive ₹3,11,000 crore in Q3 FY24. During the quarter alone, AUM expanded by approximately ₹20,700 crore, as per the company's filing with the stock exchange.
Domestic brokerage firm Motilal Oswal commented on the robust AUM growth, stating, "AUM growth of 35% YoY suggests that the festive period was strong for BAF and that it successfully leveraged traditional channels (except digital/e-commerce) for newer customer acquisitions."
The strong AUM growth is particularly notable given the challenges imposed by the Reserve Bank of India (RBI) in November last year. The RBI directed Bajaj Finance Ltd. (BAF) to halt sanctioning and disbursing loans under its 'eCOM' and 'Insta EMI Card' lending products.
Despite these challenges, the company's customer franchise witnessed a significant rise, with the number of customers increasing to 80.41 million in Q3 FY24 from 66.05 million in Q3 FY23. Notably, during the December quarter alone, the customer franchise increased by 3.85 million.
Bajaj Finance also highlighted its strong liquidity position, reporting a consolidated net liquidity surplus of approximately ₹11,600 crore as of December 31, 2023. The deposits book reflected a robust 35% YoY growth, standing at approximately ₹58,000 crore in Q3 FY24 compared to ₹42,984 crore in Q3 FY23.
