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Axis Securities Report
Bajaj Finance Ltd. added 3.85 million customers (+24/8% YoY/QoQ) during the quarter versus 3.1/3.6 million customer YoY/QoQ, taking the total customer base to 80.4 million customers (+22/5% YoY/QoQ).
The company booked ~9.9 million loans during the quarter (+26/15% YoY/QoQ). The management had guided to add 13-14 million customers in FY24 thereby exiting with a customer base of 82.5-83 million customers.
Encouraging operational performance: Net interest income grew by 29/6% YoY/QoQ aided by assets under management growth of 35/7% YoY/QoQ while margins (calculated on AAUM) contracted by ~11 bps QoQ (at the lower end of the guided range of 100-15 bps of margin contraction).
Opex grew by 22/5% YoY and the cost-income ratio stood flat QoQ at ~33.9% versus 34% QoQ. Pre-provision operating profit grew by 27/5% YoY/QoQ.
Credit costs inched up to 1.66% versus 1.54% QoQ. Earnings growth was at 22/2% YoY/QoQ. The Reserve Bank of India circular on increased risk weight on consumer credit exposure from 100% to 125% had an impact of 290 bps on CRAR. The tier-I capital was 22.8%.
Asset Quality Steady: Gross/net non-performing asset inched up marginally to 0.95/0.37% versus 0.91/0.31% QoQ.
Most segment ex-rural B2C continue to report healthy asset quality trends. Hence, the management has slowed down the pace of growth in the rural B2C book owing to higher delinquencies.
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