Bajaj Finance Q3 Results Review - Credit Cost At Pre-Covid Level: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Bajaj Finance Ltd. delivered a mild miss on net interest income/pre-provision operating profit and 4% lower-than-expected earnings on account of 11 basis points QoQ compression in net interest margin and increased credit cost at 1.7%. Assets under management growth was strong at 7% QoQ/35% YoY notwithstanding a sharp growth deceleration in rural B2C (excluding gold loans) and calibration in urban B2C product segments. Disbursement growth in B2B segments, mortgages and two-wheeler/three-wheeler financing continues to be robust. The small and medium enterprise and commercial portfolios of Bajaj Finance also continue to grow at strong pace. Overall, new loans booked in the quarter were up 26% YoY and co. added highestever 3.85 million new customers. .The decline in NIM mainly came on the back of 9 bps increase in funding cost.In the light of increase in risk weights and higher incremental cost of funds, Bajaj Finance has increased rates across all portfolios by 20-30 bps. Company augmented its distribution and resources by 4-6% in the quarter, and hence Opex grew by 5% QoQ.Except for mortgages, the stage-II and stage-III delinquencies rose meaningfully across most products. The higher delinquency flows during the quarter underpinned the increase in credit cost. Management assesses that risk metrics across all businesses were stable except for Rural B2C. Loan losses were higher in Urban B2C segment due to lower collection efficiencies, but portfolio remains in good shape..Click on the attachment to read the full report:.Bajaj Finance Q3 Results Review -Elevated Credit Costs From B2C Businesses; NIM Contracts: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Finance Q3 Results Review - Credit Cost At Pre-Covid Level: Yes Securities

Sturdy earnings growth and RoE delivery expected; Retain Buy with 12 million target price of Rs 9225

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP