Bajaj Finance witnessed a 21% year-on-year rise in its consolidated net profit for Q4, amounting to ₹3,825 crore. This includes the financial performance of its wholly-owned subsidiaries, namely Bajaj Housing Finance and Bajaj Financial Securities, along with its associate companies Snapwork Technologies and Pennant Technologies.

Summary:

  • Consolidated PAT up by 21% in Q4.
  • Loan losses and provisions increased by 53%.
  • Gross NPA ratio improved to 0.85%.
  • Total AUM grew by 34% to ₹3.3-lakh crore.
  • Company aims to add 1.2-1.4 crore customers in FY25.

Table of Contents:

Growth Metrics

Diving into the specifics, the number of new loans booked during the quarter experienced a 4% year-on-year increase, totaling 78.7 lakh. However, about 8 lakh new loans were lower due to RBI restrictions on loan sanction and disbursal under certain categories.

Total Assets Under Management (AUM) recorded a notable growth of 34% to reach ₹3.3-lakh crore. The Net Interest Income (NII) also witnessed a 28% increase, amounting to ₹8,013 crore. Notably, the Net Interest Margin (NIM) declined by 21 basis points sequentially, attributed to changes in AUM composition.

FY25 Outlook

Looking ahead, Bajaj Finance is optimistic about its performance in the current financial year. After successfully adding a record 1.45 crore customers in FY24, the company aims to further expand its customer base by adding 1.2-1.4 crore customers in FY25.

The company has projected an AUM growth of 26-28% for FY25, foreseeing support from newly launched secured businesses like LAP, new car financing, and tractor finance. Moreover, it anticipates the stabilisation of AUM composition towards secured assets by September 2024.

Return on Assets (RoA) is guided within the long-term corridor of 4.6-4.8%. However, return on equity (RoE) might remain slightly lower due to additional capital raised in the preceding quarter.

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Published on April 25, 2024