Bajaj Finance shares gain 4.6% on strong Q3 update, AUM grows 35% YoY
Bajaj Finance jumped 4.6% to ₹7,723.95 apiece in early trade on Thursday following the company's December quarter update, which was released on Wednesday. The update highlighted a significant 26% YoY increase in loans booked during Q3 of FY24, bringing the total loans booked by the lender to 9.86 million, up from 7.84 million in Q3 FY23. Also Read: Bajaj Auto board to consider share buyback on Monday; stock hits record high The assets under management (AUM) experienced a remarkable 35% year-over-year growth, surpassing the ₹3 lakh crore milestone and reaching approximately ₹3,11,000 crore in Q3 FY24.
During the quarter alone, the AUM increased by approximately ₹20,700 crore, according to the company's exchange filing. "AUM growth of 35% YoY suggests that the festive period was strong was BAF and that it successfully leveraged traditional channels (except digital/e-commerce) for newer customer acquisitions," said domestic brokerage firm Motilal Oswal. The brokerage stated that the company's AUM growth stood strong despite the ban on new customer acquisitions and new loans booked.
In November last year, the Reserve Bank of India (RBI) directed Bajaj Finance Ltd. (BAF) to stop sanctioning and disbursing loans under its two lending products, ‘eCOM’ and ‘Insta EMI Card'. Also Read: Torrent Power share price soars over 13% on MoU with Gujarat govt worth ₹47,350 crore Meanwhile, Bajaj Finance customer franchise also witnessed a significant rise, with the number of customers increasing to 80.41 million in Q3 FY24 from 66.05 million in Q3 FY23.
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