Bajaj Finance, India's largest non-banking lender, on April 25 reported 21 percent growth in its consolidated profit after tax to Rs 3,825 crore in the fourth quarter of the financial year 2023-24 from Rs 3,158 crore in the year-ago period.
Consolidated numbers include the businesses of the lender's subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities.
The net profit of the company has increased on the back of rising assets under management, net interest income and improvement in the asset quality.
Here are five key highlights from the Q4FY24 earnings of Bajaj Finance.
Also read: Bajaj Finance says complied with RBI's directions; formally seeks review of restrictions imposed
AUM
In the January-March quarter, the consolidated assets under management (AUM) of the company grew 34 percent on-year to Rs 3.31 lakh crore, as compared to Rs 2.47 lakh crore in a similar period last year.
AUM in the quarter has grown by Rs 19,647 crore in the reporting quarter.
AUM of the consolidated mortgages, which have a largest share in AUM, grew 33 percent on-year to Rs 1.03 lakh crore.
Urban B2C consolidated AUM grew 29 percent on-year to Rs 66,093 crore as on March 31, 2024, from Rs 51,346 crore as on March 31, 2023.
Car Loans' AUM rose 156 percent on-year to Rs 7,087 crore as on March 31, 2024, from Rs 2,763 crore as on March 31, 2023.
Asset quality
In the reporting quarter, gross non-performing assets (NPA) stood at 0.85 percent as on March 31, 2024, as compared to 0.94 percent in a similar period last year.
Similarly, net NPA eased to 0.37 percent as on March 31, as against 0.37 percent in a year ago period.
The company have a provision coverage ratio on stage 3 assets is 57 percent.
Capital adequacy ratio (CRAR) (including Tier-II capital) as of March 31, 2024 was 22.52 percent. The Tier-I capital was 21 .51 percent.
Net interest income
Bajaj Finance’s consolidated net interest income increased by 28 percent in Q4FY24 to Rs 8,013 crore, from Rs 6,254 crore in Q4FY23.
On a standalone basis, Net interest income increased by 29 percent in Q4FY24 to Rs 7,340 crore from Rs 5,669 crore in Q4FY23.
Net total income on a standalone basis increased 25 percent in Q4FY24 to Rs 8,904 crore from Rs 7,105 crore in Q4FY23.
Seeks removal of restriction on two lending products
Bajaj Finance said it has made required changes in response to the regulatory restriction imposed by RBI on the Company, on sanction and disbursal of loans under 'eCOM' and 'lnsta EMI Card'. The company has formally requested RBI for a review and removal of these restrictions.
On November 15, 2023, the Reserve Bank of India directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect.
The RBI said that this action is necessitated due to non-adherence of the company to the extant provisions of Digital lending guidelines of the central bank, particularly non-issuance of Key Fact Statements to the borrowers under these two lending products and deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company.
Number of new loans booked grew by 4 percent in Q4FY24 to 7.87 million as against 7.56 million in Q4 FY23. The new loans booked during the quarter were lower by approximately 0.80 million on account of the restrictions placed by the RBI on the Company, on sanction and disbursal of loans under 'eCOM' and 'lnsta EMI Card'.
Also read: Bajaj Finance Q4 results: Net profit rises 21% to Rs 3,825 cr, Rs 36 dividend declared
Bajaj Housing Finance
Profit after tax of Bajaj Housing Finance increased by 26 percent to Rs 381 crore in January-March quarter, from Rs 302 crore in a similar period last year.
Assets under management grew by 32 percent to Rs 91,370 crore as of March 31, 2024 from Rs 69,228 crore as of March 31, 2023.
Net interest income increased by 11 percent in Q4FY24 to Rs 629 crore from Rs 566 crore in Q4FY23.
Loan losses and provisions in Q4FY24 was Rs 35 crore as against Rs 57 crore in Q4FY23. Bajaj Housing Finance holds a management and macro-economic overlay of Rs 94 crore as of March 31, 2024.
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