Bajaj Finance Q4 Results: Net Profit Rises 42%

Bajaj Finance Ltd. saw its consolidated net profit rise sharply in the fourth quarter over a year ago even as core income remainedo subdued.

Business Highlights

Consolidated assets under management rose 7% to Rs 1.53 lakh crore at the end of the March quarter from Rs 1.43 lakh crore in the preceding three months. A year ago, assets under management were lower at Rs 1.47 lakh crore.

Bajaj Finance owns a 100% stake in Bajaj Housing Finance Ltd. and Bajaj Financial Securities Ltd., which are considered in the consolidated assets under management.

According to the company’s investor presentation:

• 5.47 million new loans were booked in Q4 FY21 as against 6.03 million a year ago.
• New loans origination across businesses, except auto finance, is back to pre-Covid levels. New wallet loans remain in abeyance while selective lending is taking place in the retail EMI business.

Capital & Liquidity

Bajaj Finance said it remains comfortable in terms of capital and liquidity.

• Capital adequacy was at 28.34% as of 31 March 2021. Tier-1 capital was 25.10%.
• Cost of funds for Q4 FY21 was 7.39% vs 8.37% in Q4 FY20.
• Liquidity buffer of Rs 16,485 crore has been maintained as of 31 March 2021. This represents 12.5% of its total borrowing.
• Bajaj Finance has paid down over Rs 7,500 crore to various banks in last two quarters to reduce cost of funds.
• Deposits book stood at Rs 25,803 crore, a growth of 20% year-on-year. Its contribution to consolidated balance sheet was 20% as of 31 March 2021.