On January 29, India's Bajaj Finance reported an increase in third-quarter profit, attributing it to robust loan growth during the holiday season. The company anticipates a profit growth of 22%-23% for the fiscal year ending March 2026.
Bajaj Finance foresees a 25% increase in balance sheet growth in the next fiscal year under stable conditions. A long-term perspective maintains expectations of 25%-27% growth in assets under management and 23%-24% profit growth without a specific timeframe indicated.
During the October-December period, Indians participate in various festivals, leading to significant spending on a variety of products, bolstering the demand for credit.
In the December quarter, Bajaj Finance experienced a 23% growth in net interest income, reaching 93.82 billion rupees, while its assets under management increased by approximately 28% to 3.98 trillion rupees.
The Indian financial sector faces challenges related to asset quality, particularly in unguarded segments like credit cards and personal loans.
Provisions set aside by the company to cover potential bad loans surged by 64% to 20.43 billion rupees. Quarter-on-quarter, provisions escalated by 7%.
Notably, Bajaj Finance noted that its loan losses have stabilized. Managing Director Rajeev Jain clarified in a conference call that the company does not foresee transforming into a bank in the near future, emphasizing a continuation of business as usual for the short to medium term.
(1 USD = 86.5330 INR)