In This Article:
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AUM Growth: INR24,119 crores, highest ever delivered.
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New Loans: 12 million loans in the quarter.
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New Customers: Added 5 million new customers.
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Customer Franchise: 97.12 million, aiming to cross 100 million by fiscal year-end.
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AUM: INR398,000 crores, 28% year-over-year growth.
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OpEx to Net Total Income: Improved to 33.1% from 33.9% last year.
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PBT: Grew by 18% to INR5,765 crores.
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PAT: Grew by 18% to INR4,308 crores.
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ROE: 19.1% versus 22% last year.
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Net NPA: 48 basis points versus 37 basis points last year.
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Locations: Added 50 new locations, total of 4,209 locations.
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Deposits Growth: 19% increase.
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Net Interest Income: Grew 23%.
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Net Total Income: Grew by 26%.
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Employee Headcount: 62,176, added 2,824 people in Q3.
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Credit Cost: INR2,043 crores, loan loss to average AUF at 2.16%.
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GNPA and NNPA: 112 basis points and 48 basis points respectively.
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ROA: 4.5% versus 4.9% last year.
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Capital Adequacy: Tier 1 at 20.8%, overall at 21.6%.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bajaj Finance Ltd (BOM:500034) reported a record high AUM growth of INR24,119 crores, marking a 28% year-over-year increase.
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The company added 5 million new customers, bringing the total customer base to 97.12 million, on track to surpass 100 million by the fiscal year-end.
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Net interest income grew by 23%, with net total income increasing by 26%, indicating strong operational performance.
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The company has a strong liquidity buffer of INR13,600 crores and a stable cost of funds, with deposits growing by 19%.
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Bajaj Finance Ltd (BOM:500034) announced a strategic partnership with Bharti Airtel, expected to enhance product offerings and customer reach.
Negative Points
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Net NPA increased to 48 basis points from 37 basis points last year, indicating some deterioration in asset quality.
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The company is experiencing pricing pressure in certain segments, particularly in the high-ticket personal loan market.
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Credit costs remain a concern, with a forecasted range of 2.00% to 2.05% for Q4, reflecting ongoing challenges in managing loan losses.
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The discontinuation of co-branded credit card partnerships with RBL Bank and DBS may impact future revenue growth.
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Used car loan segment is under pressure, with elevated losses leading to a 30% reduction in business volumes.
Q & A Highlights
Q: Can you explain the confidence in projecting a 2.00 to 2.05 credit cost for Q4 despite increases in stage 2 and stage 3? A: Rajeev Jain, Director of Bajaj Housing Finance Ltd, explained that December and January showed better collection efficiencies. Early MOB results are improving, and proactive pruning of businesses like two-wheeler and used car loans has been done. The company expects credit costs to trend lower, aiming for sub-2% in FY26, barring any significant macroeconomic deterioration.