Business and Finance Business and Finance
Fri, December 13, 2024
[ Fri, Dec 13th 2024 ] - Food & Wine
Skillet French Onion Chicken
[ Fri, Dec 13th 2024 ] - MSN
Bad Business Codes (December 2024)
[ Fri, Dec 13th 2024 ] - Post and Courier
Column: The good old days
[ Fri, Dec 13th 2024 ] - Fast Company
YouTube is taking over TV

Bajaj Finance pivots to profitability with AI, scales back payments ambitions


Published on 2024-12-13 03:40:50 - Mint
  Print publication without navigation

  • The lender's revised five-year plan shifts focus from aggressive expansion to sustainable growth, leveraging AI to double assets while retreating from low-margin payments ventures.

Bajaj Finance reported a significant increase in its consolidated profit after tax, which rose by 22% to ₹3,639 crore in the third quarter of FY24, driven by robust growth in assets under management (AUM) and a slight improvement in net interest margins. The company's AUM grew by 35% year-on-year to ₹3.11 lakh crore, with new loans booked increasing by 26% to 9.86 million. Despite a slight dip in net interest margins from 10.5% to 10.4%, the overall profitability was supported by a stable credit cost at 1.7% of average AUM. Bajaj Finance also highlighted its advancements in digital transformation, with 90% of new loans being digitally sourced, and a significant push towards its payments business, including UPI transactions and bill payments, which saw a 70% increase in gross merchandise value (GMV). The company is also expanding its credit card business, aiming to leverage its existing customer base for growth. However, the article notes that the company's stock performance has been lackluster, with shares declining by 10% over the past year, reflecting investor concerns over high valuations and potential competition.

Read the Full Mint Article at:
[ https://www.livemint.com/companies/news/bajaj-finance-profitability-aum-market-share-credit-cost-ai-payments-business-upi-bill-payments-gmv-credit-card-business-11734066453417.html ]