Bajaj Finance Limited has recently reported robust financial results for the third quarter of fiscal year 2024 (Q3 FY24). Bajaj Finance achieved a consolidated profit after tax of approximately ₹3,639 crore, indicating a notable 22 per cent increase compared to the same period in the previous fiscal year. Moreover, the consolidated assets under management (AUM) reached a significant milestone, surpassing ₹300,000 crore, and stood at ₹310,968 crore as of December 31, 2023.
The consolidated performance highlights for Q3 FY24 showcase impressive growth across key indicators. New loans booked recorded a substantial 26 per cent increase, reaching 9.86 million, while the customer franchise expanded by 22 per cent to 80.41 million. Assets under management (AUM) demonstrated robust growth, surging by 35 per cent to ₹310,968 crore. The profit after tax also exhibited a noteworthy 22 per cent increase, amounting to ₹3,639 crore.
Financial metrics and operational insights reveal the company’s strong performance. Net interest income witnessed a significant 29 per cent surge to ₹7,655 crore, and net total income increased by 25 per cent to ₹9,298 crore. The operating expenses to net total income ratio improved to 33.9 per cent, while pre-provisioning operating profit increased by 27 per cent to ₹6,142 crore. Loan losses and provisions for Q3 FY24 amounted to ₹1,248 crore, with the company holding a management and macro-economic overlay of ₹590 crore as of December 31, 2023.
Despite challenges such as the softening net interest margin and regulatory actions, the profit before tax increased drastically.
The asset quality and capital adequacy of Bajaj Finance were also highlighted in the financial report. As of December 31, 2023, the gross and net non-performing asset (NPA) ratios stood at 0.95 per cent and 0.37 per cent, respectively. The provisioning coverage ratio on stage 3 assets was reported at 62 per cent. The capital adequacy ratio (CRAR) was 23.87 per cent, and when adjusted for the Reserve Bank of India‘s risk weight change, it would have been 26.77 per cent.
The standalone performance highlights for Bajaj Finance Limited in Q3 FY24 also reflected substantial growth, with a 38 per cent increase in assets under management, a 30 per cent rise in net interest income, and a 26 per cent growth in net total income. Pre-provisioning operating profit increased by 27 per cent, and profit after tax rose by 21 per cent.
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