Bajaj Finance Q3 preview: Profit estimated to rise 25% YoY; asset quality to remain steady

Bajaj Finance Q3 preview: Bajaj Finance is set to announce its Q3 earnings on January 29 (Monday). Zee Business Research desk estimates the company will post good growth in its business, with consolidated profit at the NBFC firm rising 25.1 per cent year-on-year (YoY) to Rs 3,720 crore, in contrast to Rs 2,973 crore reported during the same period last year.

The net interest income, or NII, is also seen climbing by 26.1 per cent during the December quarter of the ongoing financial year to Rs 7,470 crore versus Rs 5,922.2 crore in the corresponding period of the last fiscal.

NIM, or net interest margin, on the other hand, is expected to come in lower at 10 per cent in comparison to 10.26 per cent in the September-ended quarter on the back of increased credit costs. The research team estimates credit costs to increase by 10 bps sequentially. 1 bps, or basis point, is one-hundredth of a percentage point.

Furthermore, asset quality is expected to remain steady, with gross non-performing assets as a percentage of total loans declining to 0.9 per cent as against 0.91 per cent in the previous quarter. Similarly, the research team estimates net non-performing assets to come in at 0.3 per cent versus 0.31 per cent in the September-ended quarter.

Bajaj Finance’s Q3 business update

In its Q3 business update, the company said that its new loan book expanded to Rs 9.86 million in the December quarter as against Rs 7.84 million in the same period last year. Further, deposits at the company grew 35 per cent YoY to Rs 58,000 crore as against Rs 42,984 crore registered in the same quarter a year ago.

The customer franchise as of December 31, 2023, stood at 80.41 million, compared to 66.05 million as of December 31, 2022.

Furthermore, as per the company’s filing with the exchanges, the NBFC’s assets under management (AUM) grew by 35 per cent to around Rs 3,11,000 crore as of December 31, 2023, as against Rs 230,842 crore as of December 31, 2022.

Over the past one year, shares of Bajaj Finance have climbed 20 per cent. The stock’s 52-week low and high prices are Rs 5,485.7 and Rs 8,192 per share, respectively.

In Thursday's trade (January 25, 2023), shares of the company traded higher by 0.17 per cent at Rs 7070.85 apiece on the BSE.