Last Updated on January 31, 2024 by ethinos
Table of Content
Key Highlights
- Bajaj Finserv remains a debt-free company.
- Surplus funds (Excluding Group Investments) as of December 31, 2023, amounted to ₹2,284 crore, compared to ₹1,822 crore as of December 31, 2022, and ₹1,709 crore as of March 31, 2023.
- Consolidated Book Value Per Share was ₹360 as of December 31, 2023, compared to ₹280 as of December 31, 2022.
- Profit After Tax (PAT) includes unrealized mark-to-market (MTM) gain on equity investments measured at fair value through profit and loss of BALIC and BAGIC. In Q3 FY24, the MTM gain was ₹103 crore, compared to ₹43 crore in Q3 FY23. Excluding the MTM impact, PAT growth for the quarter was 18%.
Additional Read: Q3 Results Dashboard
Adjustments (Net of Tax):
- Unrealized MTM Gain on BAGIC Investments: ₹24 crore
- Unrealized MTM Gain on BALIC Investments: ₹79 crore
Additional Details:
- Bajaj Finserv – Consolidated: ₹2,158 crore (+21%)
- Bajaj Finserv – Consolidated: ₹1,782 crore (+42%)
- Includes Bajaj Markets (₹10 crore), eBH (₹56 crore), BFS AMC (₹7 crore), and BFS Ventures (₹1 crore).
- Includes Bajaj Markets (₹21 crore), eBH (₹37 crore), BFS AMC (₹44 crore), and BFS Ventures (₹1 crore).
AUM & Business Franchise Growth:
- AUM as of December 31, 2023, stood at ₹3,10,968 crore, showing a 35% growth compared to last year. The AUM growth in Q3 FY24 was ₹20,704 crore.
- 98.6 lakh new loans were booked in Q3 FY24, compared to 78.4 lakh in Q3 FY23. BFL witnessed the highest ever new customer acquisition of 38.5 lakh in Q3 FY24, up from 31.4 lakh in Q3 FY23Total customer franchise grew by 22% year-on-year to 8.04 crore as of December 31, 2023.
- In Q3 FY24, BFL added 158 new locations and 9.5K distribution points, increasing its geographic presence to 4,092 locations and over 1.9 lakh active distribution points as of December 31, 2023, compared to 3,714 locations and 1.44 distribution points as of December 31, 2022.
- Bajaj Finserv App now has 4.9 crore net users, up from 3.1 crore as of December 31, 2022.
NIM Metrics, Liquidity, and Operating Expense:
- Net Interest Income (NII) for Q3 FY24 was ₹7,655 crore, compared to ₹5,922 crore in Q3 FY23. The Company increased rates across all portfolios by 20-30 bps due to increased risk weights and higher incremental cost of funds.
- Deposits book as of December 31, 2023, stood at ₹58,008 crore, showing a 35% year-on-year growth, with a contribution to consolidated borrowing of 22%.
- Opex to Net Total Income(NTI) improved to 33.9% in Q3 FY24, compared to 34.8% in Q3 FY23, as the Company implemented various digital initiatives to enhance operating efficiencies.
- Loan losses & provisions for Q3 FY24 were ₹1,248 crore, compared to ₹841 crore in Q3 FY23. The Company holds a management & macro-economic overlay provision of ₹590 crore as of December 31, 2023. ₹150 crore was released from the overlay in Q3.
- Annualised loan loss to average AUF was 1.69% in Q3 FY24, compared to 1.54% in Q3 FY23.
- GNPA & NNPA stood at 0.95% and 0.37%, respectively, as of December 31, 2023, compared to 1.14% and 0.41%, respectively, as of December 31, 2022.
- Profit after tax (PAT) for Q3 FY24 increased by 22% to ₹3,639 crore, compared to ₹2,973 crore in Q3 FY23. However, NIM continues to soften gradually, and elevated loan losses and regulatory action impacted profit growth by approximately 5-6%.
- Capital adequacy remained strong at 23.87% as of December 31, 2023, with Tier-1 capital at 22.80%. Adjusted for the RBI’s risk weight increase, CRAR would have been 26.77%.
- On November 2, 2023, through Preferential Issue, BFL allotted 15,50,000 warrants to Bajaj Finserv Limited at a price of ₹7,670 per warrant. On November 9, 2023, through Qualified Institutions Placement (QIP), BFL allotted 12,104,539 equity shares to eligible investors at a price of ₹7,270 per Equity Share, aggregating approximately ₹8,800 crore.
Subsidiaries – Q3 2023-24:
Bajaj Housing Finance Limited (BHFL):
- AUM grew by 31% to ₹85,929 crore as of December 31, 2023, from ₹65,581 crore as of December 31, 2022.
- Overall disbursements grew by 44% in Q3, with disbursements reaching ₹10,727 crore in Q3 FY24, compared to ₹7,429 crore in Q3 FY23.
- Opex to NTI stood at 23.2% in Q3 FY24, compared to 24.5% in Q3 FY23.
- Profit after tax (PAT) grew by 31% to ₹437 crore in Q3 FY24, against ₹334 crore in Q3 FY23.
- GNPA & NNPA stood at 0.25% and 0.10%, respectively, as of December 31, 2023, compared to 0.23% and 0.10%, respectively, as of December 31, 2022.
- BHFL’s Capital adequacy ratio (including Tier-II capital) as of December 31, 2023, stood at 21.92%.
Bajaj Financial Securities Limited:
- Net Total Income of ₹74 crore in Q3 FY24, compared to ₹46 crore in Q3 FY23.
- Profit after tax of ₹16 crore in Q3 FY24, compared to profit of ₹3 crore in Q3 FY23.
Revenue Growth:
- GDPI grew by 18.7% in Q3 FY24, surpassing Private sector growth of 16.2% and Industry growth of 11.2%.
- Excluding Crop & Govt. Health, Q3 FY24 GDPI grew by 19.6% compared to Private sector growth of 14.8% and Industry growth of 9.4%, driven mainly by strong growth in Commercial lines (19%), Group health (36%), and Retail health (15%), partially offset by a decline in crop insurance (17%).
- Growth was significantly better than the market in almost all profitable segments, with muted growth of 5% in the motor segment (reflecting industry slowdown and focus on preferred lines of business). Segmental growth: CV: -1%, 2W: 11%, and 4W: 6%.
Loss Ratio (LR) and Combined Ratio (COR):
- For Q3 FY24, the claim ratio was 72.9% compared to 72.1% in Q3 FY23.
- The claim ratio was higher than the previous year due to NAT CAT claims; excluding NAT CAT, the claim ratio improved to 69.5%.
- COR increased to 102.9% in Q3 FY24 compared to 100.3% in Q3 FY23 due to NAT CAT claims of ₹79 crore. Excluding the NAT CAT impact, COR was at 99.5%.
Profit after tax (PAT) and Capital Position:
- Q3 FY24 Profit After Tax (PAT) was ₹287 crore compared to ₹278 crore in Q3 FY23. Lower PAT was attributable to NATCAT claims (Pre-tax) of ₹79 crore and lower investment realised gains of ₹26 crore compared to the previous year (timing variance).
- Solvency Ratio was healthy at 355% as of December 31, 2023.
Additional Check: BAJAJ FINSERV Share Price
About Bajaj Finserv
Bajaj Finserv is a leading non-banking finance company in India that offers a wide range of products and services, such as loans, credit cards, insurance, investments, payments and more. You can apply for loans online, shop on EMIs, make an investment, get insurance and pay your bills with Bajaj Finserv. Here are some of its features:
- Loans: Bajaj Finserv provides personal loans, home loans, business loans, gold loans, doctor loans, EMI network card loans and more. You can get instant approval, flexible repayment options, low interest rates and minimal documentation with Bajaj Finserv loans.
- Credit Cards: Bajaj Finserv offers co-branded credit cards with DBS Bank that give you up to 20x reward points, joining bonus offers, card benefits and more. You can also get an EMI network card that lets you shop on EMIs across various online and offline partners.
- Insurance: Bajaj Finserv offers health insurance, car insurance, bike insurance, term life insurance and personal accident cover. You can get comprehensive coverage, cashless claims, affordable premiums and tax benefits with Bajaj Finserv insurance.
- Investments: Bajaj Finserv offers mutual funds, fixed deposits, systematic deposit plans, new fund offers and more. You can get high returns, safety, liquidity and tax benefits with Bajaj Finserv investments.
- Payments: Bajaj Finserv offers wallets and cards, bills and recharges, pre-approved offers, offers and promotions and more. You can make payments, recharge, avail discounts, earn rewards and access value-added services with Bajaj Finserv payments.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/b395f74f-9678-41a1-8aaf-7c87c043e123.pdf
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