Bajaj Finance Records a 30% Rise in Net Profit and Recommends Rs 30 Dividend

  • Bajaj Finance reports 30% YoY jump in Q4 net profit to Rs 3,158 crore.
  • The company’s net interest income for the quarter rose 28% YoY to Rs 7,771 crore.
  • Bajaj Finance added 30.90 lakh new customers and delivered Rs 16,537 crore of core AUM growth in the March quarter.

Summary Table

CompanyBajaj Finance 🏦
QuarterMarch 2023 πŸ“…
Net ProfitRs 3,158 crore, up 30% YoY πŸ’Ή
Net Interest Income (NII)Rs 7,771 crore, up 28% YoY πŸ“ˆ
Core Asset Under Management (AUM)Rs 16,537 crore growth πŸ’°
New Customers30.90 lakh πŸ†•
App Platform Users3.55 crore πŸ“±
DividendRs 30 per share recommended πŸ’°
Cost of Funds7.39% πŸ’°
Gross NPA0.94% πŸ“Š
Net NPA0.34% πŸ“Š
Annualised ROA5.40% πŸ’Ή
Annualised ROE23.94% πŸ’Ή
Capital Adequacy24.97% πŸ’°
Opex to NII34.1% πŸ“Š
DepositsRs 1,682 crore growth, 21% of consolidated borrowings πŸ’°
Source: Bajaj Finance

Robust Financial and Portfolio Performance

Bajaj Finance reports that all financial and portfolio metrics for the March quarter were strong. In addition to adding 30.90 lakh new customers to its franchise, the company increased its core assets under management (AUM) by Rs 16,537 crore. The business also disclosed that all goods and services are now accessible via web and mobile app platforms, which have a combined 3.55 crore net users.

Bajaj Finance expanded geographically during the March quarter, adding 19 new locations and 10,800 distribution points, bringing its total to 3,733 locations and more than 1,54,000 active distribution points as of March 31.

Declaration of Dividends

The board of directors of Bajaj Finance has suggested a dividend of Rs. 30 per share for the fiscal year that ended on March 31, 2023. According to the company, the dividend would be credited on or around July 28 or July 29 if declared by shareholders at the upcoming annual general meeting.

Asset Quality

Gross non-performing assets for the NBFC for the quarter were 0.94% as opposed to 1.6% in the same period last year. Net NPA was 0.34 percent versus 0.68% year over year. As of March 31, the company’s stage 3 assets were worth Rs 2,313 crore, down from Rs 3,133 crore as of March 31, 2022.

Return on Equity and Asset

Comparing the current quarter to the same quarter last year, Bajaj Finance’s annualised return on asset (ROA) was 5.40%. The annualised return on equity (ROE) was 23.94% compared to 22.80% year over year. Tier-1 capital was at 23.20%, and the company’s capital adequacy ratio was 24.97%.

Investment in Business Transformation

In FY24, Bajaj Finance made investments in social and rewards platforms as part of its ongoing investment in people and technology for business transformation. Opex to NII for the company increased from 34.5% YoY to 34.1%.