Bajaj Finance Delivers Robust Q4 Performance, Announces Stock Split and Bonus Issue

Bajaj Finance, has reported a strong performance for the fourth quarter ended March 2025, alongside approving significant rewards for its investors, including a stock split and a bonus issue. The share price of the company closed at ₹9105, with a slight increase of 0.13%.

Financial Highlights

For the fourth quarter, Bajaj Finance reported a net profit rise of 19% year-on-year to ₹4,546 crore. Separately, standalone figures showed net profit up 16% to ₹3,940 crore compared to ₹3,401 crore in the same period last year. Revenue on a standalone basis also saw a significant increase, rising 23.8% to ₹15,808 crore from ₹12,764 crore. The company's Net Interest Income (NII) also demonstrated healthy growth. NII rose 22% to ₹9,807 crore, compared to ₹8,013 crore in the prior year quarter. 

Asset Quality and Margins

On the asset quality front, the standalone figures showed Gross NPA at 1.18%, an increase from 1.05% year-on-year, while Net NPA stood at 0.56%, up from 0.46% in the same period last year. Despite this slight uptick in reported NPAs on a standalone basis, the company's asset quality remains largely stable in Q4, supported by strong collection efficiencies across its product portfolio.

Investor Rewards: Split, Bonus, and Dividends

The Board has recommended a stock split in the proportion of 1:2. This means that for every existing share, shareholders will receive two shares, effectively splitting each share with a face value of ₹2 into one share of ₹1 each. Additionally, the company announced a separate bonus issue in the ratio of 4:1. Under this plan, investors will receive an additional four shares for every share they hold as of the record date. With over 70 lakh shareholders, this bonus issue is expected to expand the shareholder base further.

Beyond the structural changes to the shares, the Board also approved dividends for the financial year. Shareholders will receive a special dividend of ₹12 per share and a final dividend of ₹44 per share.

Market Context

Ahead of the earnings announcement, Bajaj Finance shares were trading marginally lower or flat. The company's share price history shows robust performance over the long term, with a 5-year gain of 306.33%. 

The strong quarterly performance expectation was driven by robust loan growth across consumer, SME, and rural segments. Furthermore, the company's diversified lending portfolio and focus on customer base expansion and cross-selling are noted as factors supporting sustained growth. Overall, the Q4 results indicate continued operational strength, while the announced stock split, bonus issue, and dividends signal management's confidence and commitment to returning value to shareholders.

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