BENGALURU, July 28 (Reuters) – Shares of Bajaj Finance (BJFN.NS) jumped 10% on Thursday, the most in more than two years, after the non-bank lender’s quarterly profit blew past estimates on stocks. additions of major customers and lower bad debt provisions.

The company said on Wednesday its profit more than doubled to 25.96 billion rupees ($325.37 million), beating expectations of 24.41 billion rupees as loan loss provisions fell 57 %.

Bajaj Finance said it was focused on protecting its margins, amid growing competition in the industry.

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“The company began to gradually increase prices for all products beginning in June 2022,” it said in a statement, adding that new loans booked jumped 60.3% year-on-year. former.

“The trajectory of customer acquisitions and new loans has been strong and the momentum will only grow with the digital ecosystem – app, web platform and comprehensive payment offerings,” Motilal Oswal analysts said in a rating.

Bajaj Finance said it is on track to offer all products and services on the app by January 2023.

Management’s forecast of reaching 4 trillion rupees in assets under management (AUM) looks solid and we expect a significant acceleration in loan growth on the back of stable economic growth, Morgan Stanley analysts wrote. in a note.

At the end of the June quarter, assets under management were up 28% to Rs 2.04 trillion.

Shares of Bajaj Finserv (BJFS.NS), the holding company of Bajaj Finance, soared 9.2% after approving a free share issue and a stock split as its profits rose.

Shares of Bajaj Finance, down 8.3% so far this year at the last close, were the main driver of the blue-chip Nifty 50 index (.NSEI).

($1 = 79.7850 Indian rupees)

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Reporting by Nallur Sethuraman in Bangalore; edited by Uttaresh.V and Vinay Dwivedi

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