Bajaj Finance Q3 results: NII likely to rise 26% led by strong AUM growth, say analysts

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Bajaj Finance will be announcing its financial results for the December quarter on January 29, Monday. According to analysts, the lender's consolidated net profit is anticipated to experience a significant 25 percent year-on-year growth, reaching ₹3,716 crore. Brokerages further anticipates a 26 percent year-on-year (YoY) increase in net interest income to reach ₹9,344 crore, led by stable asset quality and robust growth in assets under management (AUM), foreseeing that these factors will be key drivers of earnings.

Also read: Q3 results this week: Bajaj Fin, ITC, L&T, Tata Motors, Adani Enterprises among others to declare earnings. Full list here On January 3, Bajaj Finance released provisional figures for the Assets Under Management (AUM) for the December quarter. Fueled by a robust festive season, the company's AUM surpassed the significant milestone of ₹3 lakh crore for the first time in the previous quarter, reflecting a remarkable year-on-year surge of 35 percent.

According to the Q3 update, Bajaj Finance experienced a noteworthy expansion in its deposit book, witnessing a growth of 35 percent, reaching ₹58,000 crore. Notably, during the quarter, the company approved 98.6 lakh new loans, showcasing a substantial year-on-year growth of 26 percent. Brokerage firm Kotak Institutional Equities said that Bajaj Finance will continue to deliver 7-8% qoq loan growth, adding, “We expect overall momentum of disbursements to remain strong.

While festive demand was tad weak, expansion in footprint and diversification in new segments over the last few months will drive disbursements. Unsecured loans will likely see some slowdown, mostly from business originated through partnerships. High base in non- affordable housing loans