Last Updated on January 30, 2024 by ethinos
Table of Content
Bajaj Finance Financial Results:
Consolidated Profit After Tax:
Bajaj Finance reported a consolidated profit after tax of approximately Rs 3,639 crore in Q3 FY24.
Assets Under Management (AUM):
Consolidated AUM crossed a milestone of approximately Rs 300,000 crore in Q3 FY24, reaching Rs 310,968 crore as of 31 December 2023.
Board Meeting and Consolidated Results:
- A meeting of the Board of Directors of Bajaj Finance Limited (BFL) was convened to consider and approve the unaudited standalone and consolidated results for the quarter ended 31 December 2023.
Consolidated results include:
- Wholly-owned subsidiaries: Bajaj Housing Finance Limited (BHFL), Bajaj Financial Securities Limited (BFinsec).
- Associate company: Snapwork Technologies Private Limited (from 26 November 2022).
Additional Read: Q3 Results Dashboard
Consolidated Performance Highlights – Q3 FY24:
New Loans Booked:
The number of new loans booked grew by 26% in Q3 FY24, totaling 9.86 million, compared to 7.84 million in Q3 FY23.
Customer Franchise:
The customer franchise expanded to 80.41 million as of 31 December 2023, a 22% growth from 66.05 million as of 31 December 2022. The company recorded its highest-ever quarterly increase in customer franchise, adding 3.85 million in Q3 FY24.
AUM Growth:
AUM grew by 35% to Rs 310,968 crore as of 31 December 2023, up from Rs 230,842 crore as of 31 December 2022, representing an increase of Rs 20,704 crore in Q3 FY24.
Financial Performance:
- Net Interest Income increased by 29% in Q3 FY24 to Rs 7,655 crore from Rs 5,922 crore in Q3 FY23.
- Net Total Income rose by 25% in Q3 FY24 to Rs 9,298 crore from Rs 7,438 crore in Q3 FY23.
- Operating Expenses to Net Total Income ratio for Q3 FY24 improved to 33.9% from 34.8% in Q3 FY23.
- Pre-Provisioning Operating Profit surged by 27% in Q3 FY24 to Rs 6,142 crore from Rs 4,853 crore in Q3 FY23.
- Loan Losses and Provisions in Q3 FY24 amounted to Rs 1,248 crore, compared to Rs 841 crore in Q3 FY23. Additionally, the company holds a management and macro-economic overlay of Rs 590 crore as of 31 December 2023.
Profit Before Tax (PBT):
- PBT increased by 22% in Q3 FY24 to approximately Rs 4,896 crore from Rs 4,012 crore in Q3 FY23.
- The gradual softening of net interest margin, coupled with increased loan losses and the impact of Regulatory action, resulted in profit growth being lower by approximately 5-6% in Q3 FY24.
Profit After Tax (PAT):
PAT increased by 22% in Q3 FY24 to approximately Rs 3,639 crore from Rs 2,973 crore in Q3 FY23.
Asset Quality:
- Non-Performing Assets (NPA): Gross NPA and Net NPA as of 31 December 2023 stood at 0.95% and 0.37% respectively, compared to 1.14% and 0.41% as of 31 December 2022.
- The company has a provisioning coverage ratio of 62% on stage 3 assets as of 31 December 2023.
Capital Adequacy:
- Capital Adequacy Ratio (CRAR): CRAR (including Tier-II capital) as of 31 December 2023 was 23.87%, with Tier-I capital at 22.80%.
- Adjusted for the change in risk weight on consumer credit exposure by RBI, CRAR would have been 26.77%.
Credit Ratings:
- The company holds the highest credit rating of AAA/Stable for its long-term debt program from CRISIL, ICRA, CARE, and India Ratings.
- Short-term debt program is rated A1+ by CRISIL, ICRA, and India Ratings.
- Fixed deposits program is rated AAA (Stable) by CRISIL and ICRA.
- Long-term issuer rating is BBB-/Stable and short-term issuer rating is A-3 by S&P Global ratings.
Allotment and Acquisitions:
- On 2 November 2023, the company allotted 1,550,000 warrants to Bajaj Finserv Limited on a preferential basis, receiving application money aggregating to approximately Rs 297.21 crore. The remaining 75% of the consideration will be paid upon conversion of warrants into equity shares within eighteen months.
- On 9 November 2023, the company allotted 12,104,539 equity shares through Qualified Institutions Placement (QIP) to eligible investors at a price of approximately Rs 7,270 per equity share, aggregating approximately Rs 8,800 crore.
- On 19 January 2024, the company acquired a 26.53% equity stake in Pennant Technologies Private Limited for approximately Rs 267.47 crore.
Standalone Performance Highlights Bajaj Finance Limited – Q3 FY24
- Assets under management grew by 38% to approximately Rs 232,040 crore as of 31 December 2023 from Rs 168,359 crore as of 31 December 2022.
- Net interest income increased by 30% in Q3 FY24 to approximately Rs 6,973 crore from Rs 5,347 crore in Q3 FY23.
- Net total income rose by 26% in Q3 FY24 to approximately Rs 8,485 crore from Rs 6,760 crore in Q3 FY23.
- Pre-provisioning operating profit surged by 27% in Q3 FY24 to approximately Rs 5,539 crore from Rs 4,351 crore in Q3 FY23.
- Loan losses and provisions in Q3 FY24 amounted to approximately Rs 1,248 crore compared to Rs 811 crore in Q3 FY23. Additionally, the company holds a management and macro-economic overlay of approximately Rs 440 crore as of 31 December 2023.
- Profit before tax increased by 21% in Q3 FY24 to approximately Rs 4,291 crore from Rs 3,540 crore in Q3 FY23.
- Profit after tax also increased by 21% in Q3 FY24 to approximately Rs 3,177 crore from Rs 2,624 crore in Q3 FY23.
- Capital adequacy ratio (including Tier-II capital) as of 31 December 2023 stood at 21.92%.
- Bajaj Housing Finance Limited (BHFL) holds the highest credit rating of AAA/Stable for its long-term debt program from CRISIL and India Ratings, and A1+ for its short-term debt program from CRISIL and India Ratings.
Consolidated Performance Highlights
| Particulars | Q3 FY24 | Q3 FY23 | Growth |
| New loans booked (No. in million) | 9.86 | 7.84 | 26% |
| Customer franchise (in million) | 80.41 | 66.05 | 22% |
| Assets under management (₹ in crore) | 310,968 | 230,842 | 35% |
| Profit after tax (₹ in crore) | 3,639 | 2,973 | 22% |
| Annualised ROA | 4.9% | 5.4% | |
| Annualised ROE | 22.0% | 24.0% |
Additional Check: Bajaj Finance Share Price
About Bajaj Finance Limited (BFL)
Bajaj Finance Limited (BFL) is a leading non-banking financial company (NBFC) in India, offering various products and services such as loans, cards, insurance, investments, and payments. It is a subsidiary of Bajaj Finserv Limited, which is the holding company for the financial services businesses of the Bajaj Group. BFL has a diversified customer base of over 73 million and assets under management of more than Rs. 2.7 lakh crore. It has the highest credit ratings from domestic and international agencies, and operates through a network of over 60,000 partner stores across the country. BFL’s vision is to be the most admired and responsible integrated financial services company with a national presence and global aspirations.
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Sources: https://www.aboutbajajfinserv.com/finance-investor-relations-press-release
