Prime Highlights
- Bajaj Finance shares rose for the fifth straight session, reaching their highest level this year and nearing a 52-week high.
- The company reported 23.9% growth in assets under management and added a record 5.1 million customers during the quarter.
Key Facts
- Bajaj Finance is one of India’s largest non-banking financial companies, providing consumer, commercial and business lending services.
- The company reported assets under management of ₹5.46 lakh crore and deposits of ₹72,109 crore in its first-quarter business update.
Background
Shares of Bajaj Finance Ltd. continued their uptrend, adding to their five consecutive days of gains and gaining in seven of the past eight days. The upsurge in share prices took the stock close to its 52-week highs as it reached its highest price of the year.
The impressive gains come after the release of the first-quarter business update from the company, where it reported growth in various operating parameters. For example, the company reported assets under management (AUM) of ₹5.46 lakh crore, representing a 23.9% growth from the corresponding period of last year. The company also reported healthy growth in its deposit business, with deposits rising nearly 15% year-on-year to ₹72,109 crore.
The lender added a record 5.1 million customers during the quarter, taking its total customer franchise to 124.4 million. The book value of deposits was at ₹68,500 crore by the end of the June quarter, which shows that it continues to grow due to the growth of its retail operations.
In the results update, it became clear how well the company performs in expanding its loan portfolio, gaining new customers, and improving deposits. This is what helped investors feel confident about the company and made its stock price go up recently.
One such example could be Bajaj Finance Ltd., which is one of the biggest NBFCs in India. The firm provides various lending and other financial services to individuals as well as corporates. At this point, the market participants would be interested in the quarterly financial reports of the organisation.