Bajaj Finance Ltd reported an 18 percent year-on-year (YoY) rise in its consolidated net profit for the third quarter of FY25 at Rs 4,308 crore, surpassing analysts’ estimates, supported by a robust increase in assets under management. A Bloomberg poll of analysts had projected a lower net profit of Rs 4,136 crore.

Bajaj Finance’s net interest income (NII) for the quarter rose 23 percent YoY to Rs 9,382 crore from Rs 7,655 crore in Q3 FY24. The strong performance was supported by a robust increase in assets under management (AUM), which surged 28 percent to Rs 3.98 lakh crore as of December 31, 2024, compared to Rs 3.11 lakh crore in the same period last year.

Ahead of the results, Bajaj Finance stock gained 2 percent on Wednesday, closing at Rs 7,760 on the NSE.

On the asset quality front, Bajaj Finance’s gross non-performing assets (GNPA) rose to 1.12 percent as of December 31, 2024, from 0.95 percent a year earlier. Similarly, net non-performing assets (NNPA) increased to 0.48 percent from 0.37 percent. The provisioning coverage ratio on stage 3 assets stood at 57 percent.

Provisions for loan losses increased significantly to Rs 2,043 crore in Q3 FY25, up from Rs 1,248 crore a year ago. As a percentage of average assets under finance, loan losses and provisions stood at 2.16 percent.