INSUBCONTINENT EXCLUSIVE:
Customer financier Bajaj Finance reported its greatest ever quarterly revenue at Rs 2,973 crore in the October-December quarter (Q3) of
FY23, up 40 percent year on year (YoY)
The performance was aided by a healthy increase in net interest earnings (NII) and drop in arrangements and contingencies.The lending
institutions NII rose by 24 percent YoY to Rs 7,435 crore in the same duration, as it scheduled about 7.84 million loans, its highest-ever
in a single quarter, up 5 per cent YoY
Further, it reported its highest-ever consumer addition of 3.14 million in the quarter, taking its client base to 66.05 million as of
Offered strong momentum in the very first 3 quarters, the company now approximates brand-new client addition at 11 million in FY23.However,
its asset under management (AUM) grew by simply 12,476 crore in Q3, since of slower AUM development in the home loan portfolio due to
Having said that, AUM grew 27 per cent YoY to Rs 2.30 trillion, compared to Rs 1.81 trillion
Good quarter throughout all financial and portfolio metrics albeit marginally lower AUM growth
On track to provide Rs 52,000-53,000 crore of core AUM growth in FY23
Q3 witnessed greatest ever loans scheduled and new consumer addition , said the company.In Q3, business-to-business (B2B) disbursements were
up 6 per cent at Rs 16,026 crore as versus Rs 15,107 crore in Q3FY22
B2B company witnessed soft post festive need in November and December
January is looking much better, it added.Provisions of the lending institution dropped 20 per cent YoY to Rs 841 crore
And, the company anticipates its loan losses and arrangements at 1.4-1.5 percent of typical assets in FY23
It is holding a management and macro-economic overlay of Rs 1,000 crore as of December 31, 2022
Asset quality likewise improved, with gross non-performing assets (GNPAs) at the end of Q3FY23 at 1.14 per cent compared to 1.17 percent in
Similarly, net NPAs were down to 0.41 per cent, compared to 0.44 percent in the previous quarter.While the businesss cost of funds in Q3
stood at 7.14 percent, up 23 basis points (bps) from the previous quarter, it has actually handled to provide margins at Q2 levels.Its
deposits book stood at Rs 42,984 crore at the end of December quarter, with the net deposit development of Rs 3,562 crore in Q3
The company is on track to deliver its objective of 25 percent of combined loanings from deposits in the medium term, it stated
Competitive intensity remained elevated throughout all products
The Company continues to protect its margin profile across companies
The Company is slowly handing down the impact of higher interest rates to clients across services , the lending institution said.As its
long-range technique (2023-27), the company aims to be a leading payments and financial services player in the nation, with about 100
million customers, a market share of 3 per cent of payments gross merchandise worth, and 3-4 percent of the total credit market in the
country.It is likewise aiming to be amongst the top-20 profit-making business in India and among the top-5 profit-making financial services
Further, it is taking a look at developing services with a 10-year view anchored on vigilance and danger philosophy management to provide
through the cycle 19-- 21 per cent investor returns.It has likewise visualized to get and cross-sell throughout payments, possessions,
deposits, insurance coverage, investments and broking items to customer, MSME, commercial approach, and rural customers throughout all
customer platforms.Shares of the lender closed 0.71 percent at Rs 5,756 on the BSE
