Bajaj Finance on Tuesday, October 17 announced that it had acquired up to 26 per cent equity stake in Pennant Technologies Private Limited for about ₹267.50 crore.
Pennant is a technology product company, engaged in providing business-driven technology services and software products for the banking and financial services industry. It had a turnover of about ₹74.28 crore in FY23.
Meanwhile, Bajaj Finance is to announce its financial results for the second quarter of FY24 today (October 17). The non-banking finance company is expected to report a sharp growth in Q2FY24 net profit with stable asset quality and strong loan growth. As per analysts, Bajaj Finance’s net profit in the quarter ended September 2023 is expected to jump around 34 per cent year-on-year (YoY) to ₹3,725 crore. Net interest income (NII) is expected to rise more than 29 per cent to ₹7,165 crore from ₹5,537 crore a year earlier.
Brokerage firm Motilal Oswal Financial Services expects Bajaj Finance to report a decline of about 30 bps and 40 bps quarter-on-quarter (QoQ) in margins and spreads, respectively.
Brokerage firm Phillip Capital expects Bajaj Finance’s loan book to grow at 33 per cent YoY. It also expects a mild increase in the cost of funds while asset quality may remain stable.
Meanwhile, earlier in October, Bajaj Finance raised ₹8,800 crore via qualified institutions placement (QIP). Bajaj Finance’s board of directors also approved raising funds up to ₹1,200 crore via warrants.
In its filing, Bajaj Finance stated that it had raised an overall amount not more than ₹8,800 crore with the approval of the board of directors and shareholders through the issuance of equity shares with a face value of ₹2 each and warrants not more than ₹1,200 crore.
Also, last Friday, the Reserve Bank of India (RBI) imposed a hefty fine on Bajaj Finance for non-compliance with guidelines. The RBI imposed a penalty of ₹8.50 Lakh on Bajaj Finance Limited after the RBI found deficiencies in regulatory compliance. The action was based on the deficiencies in regulatory compliance. The company failed to comply with the RBI directions to the extent of not reporting and delay in reporting certain frauds to RBI.
