Bajaj Finance Reports Robust Growth in Q3 FY25, Citi Maintains Buy Rating

Bajaj Finance, one of India’s leading non-banking financial companies (NBFC), released its business updates for the October-December quarter on January 3, 2025, showcasing impressive growth across key metrics.
The company’s assets under management (AUM) surged by 28% year-on-year, reaching ₹3.98 lakh crore as of December 31, 2024, compared to ₹3.10 lakh crore a year earlier. In the third quarter of FY25, Bajaj Finance added approximately ₹24,100 crore to its AUM, signaling robust business expansion.
Bajaj Finance’s deposit book also saw a significant rise, increasing by 19% year-on-year to ₹68,800 crore, up from ₹58,008 crore in the same period last year. The company reported its highest-ever quarterly new loans booked, with 12.06 million new loans in Q3 FY25, reflecting a 22% increase from 9.86 million new loans booked in Q3 FY24.
The customer franchise expanded substantially, reaching 97.12 million by the end of December 2024, compared to 80.41 million at the end of 2023. This growth is attributed to the addition of 5.03 million new customers during the third quarter, marking the largest-ever quarterly increase in its customer base.
Citi’s Positive Outlook
On January 2, 2025, global brokerage Citi placed Bajaj Finance under a 90-day positive catalyst watch, maintaining a ‘Buy’ rating with a target price of ₹8,150 per share. Citi’s analysts expressed confidence in the company’s prospects, particularly highlighting its strong loan growth and expansion in customer numbers. They also noted that despite a slight rise in credit costs, Bajaj Finance remains well-positioned, with the company’s credit cost guidance for FY25 expected to rise to around 2.2–2.25% in the December quarter.
Citi further emphasized the stability of loan growth, driven by segments such as mortgage financing, sales financing, and new business ventures. The brokerage also identified a slight positive bias in Bajaj Finance’s net interest margins (NIM), contributing to its positive outlook. Additionally, Citi pointed out that the ongoing management transition would be crucial for evaluating the company’s long-term potential.
Stock Performance
On January 4, Bajaj Finance’s share price surged over 5% following Citi’s reiterated ‘Buy’ rating. The stock closed the previous session at ₹7,407, and has seen an 11% increase over the past month, reflecting strong investor sentiment.