Bajaj Finance said on October 17 that it has bought up to a 26% equity investment in Pennant Technologies Private Limited for Rs 267.50 crore. Pennant is a technology company that provides business-driven technology services and software products to the banking and financial services industries. In FY23, it generated a revenue of around 74.28 crore.
Meanwhile, on October 17, Bajaj Finance will release its financial results for the second quarter of FY24. The non-banking finance organization will likely record a significant net profit increase in Q2FY24 due to solid asset quality and high loan growth. According to analysts, Bajaj Finance's net profit in the quarter ended September 2023 is likely to increase by roughly 34% year on year (YoY) to 3,725 crore. Net interest income (NII) is predicted to increase by more than 29% to 7,165 crore from 5,537 crore last year.
Motilal Oswal Financial Services predicts that Bajaj Finance's margins and spreads will fall by roughly 30 and 40 basis points (bps) quarter on quarter (QoQ).
Phillip Capital expects Bajaj Finance's loan book to grow 33 percent YoY. It also expects a mild increase in the cost of funds while asset quality may remain stable.