Bajaj Finance, a prominent player in the non-banking finance sector, has treated its shareholders to an exciting financial update. On April 29, 2025, the company revealed a series of generous rewards, including a significant special dividend, a final dividend, a stock split, and a bonus share issuance during their financial results announcement for the quarter ending March 2025.
Exciting Dividend Announcements
Bajaj Finance has declared a total dividend of ₹56 for its shareholders, comprising a final dividend of ₹44 and a special interim dividend of ₹12. Here’s a breakdown of the dividends:
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Final Dividend: The Board has recommended a final payout of ₹44 per share, based on a face value of ₹2. If approved during the upcoming Annual General Meeting, this dividend is set to be credited around July 28, 2025. The record date for this dividend is established as May 30, 2025.
- Special Dividend: Additionally, a special interim dividend of ₹12 per share will be distributed, reflecting a 600% payout based on the same face value. This bonus comes in light of the company’s successful investment sale in Bajaj Housing Finance, linked to their IPO in September 2024. Shareholders can expect this special dividend to be credited by May 26, 2025, with the record date set for May 9, 2025.
Stock Split Announcement
In a strategic move to enhance liquidity, Bajaj Finance has approved a stock split in the ratio of 1:2. This means that each equity share with a face value of ₹2 will now be divided into two shares, each valued at Re 1. This split aims to make shares more accessible to a broader base of investors.
Bonus Shares for Shareholders
Further sweetening the deal, Bajaj Finance has also announced a bonus share issuance at a ratio of 4:1. This means shareholders will receive four additional equity shares of ₹1 each for every one share they hold as of the record date. This initiative is designed to reward loyal investors and enhance shareholder value.
The company’s 38th Annual General Meeting is scheduled for July 24, 2025, where further details will be disclosed.
Strong Financial Performance
In terms of financial health, Bajaj Finance reported a 16% increase in standalone profit after tax for Q4 FY25, reaching ₹3,940 crore, up from ₹3,402 crore the previous year. The net interest income (NII) also saw a significant 21% rise, amounting to ₹8,910 crore compared to ₹7,340 crore in Q4 FY24.
The company’s asset quality remains robust, with gross non-performing assets (NPA) and net NPA standing at 1.18% and 0.56%, respectively, as of the March quarter. This reflects a slight increase from 1.05% and 0.46% reported a year earlier. Notably, the assets under management surged by 26% year-on-year, reaching ₹308,832 crore by the end of March 2025.
Bajaj Finance continues to demonstrate a strong commitment to its shareholders while maintaining impressive growth metrics, positioning itself favorably within the competitive finance landscape. For more insights on corporate finance trends, you can check out articles on financial management strategies and investment opportunities.