Bajaj Finance business update!

Last updated: 05 Jan, 2021 | 10:05 am

Bajaj Finance business update!

Bajaj Finance’s latest update indicates that the company’s business is on the path to recovery, and the management is continuing to follow a conservative approach. Here are a few highlights: 

  • New loans booked: New loans booked during Q3FY21 (Oct-Dec 20) were 6.0 million as compared to 7.7 million in Q3 FY20. The metric has seen a strong 67% rise as compared to the Jul-Sep 20 period. 
  • New customers acquired: Bajaj Finance acquired 2.2 million new customers in Q3 FY21 as compared to 2.5 million in Q3 FY20. Customer franchise as of 31 December 2020 stood at 46.3 million as compared to 40.4 million as of 31 December 2019. 
  • AUM growth: The company's AUM in Q3 FY21 grew by approximately Rs 7,700 crore as compared to Rs 9,559 crore in Q3 FY20. Total AUM now stands at around ₹1.44 lakh crore. 
  • Liquidity: Consolidated liquidity surplus stood at approximately ₹ 14,600 crore as of 31 December 2020. The Company’s liquidity position remains very strong. 
  • Capital Adequacy:  The Company continues to remain well-capitalized with a capital adequacy ratio (CRAR) of approximately 28.0% as of 31 December 2020.

INDmoney Analysis

The update by Bajaj Finance indicates that the business is on the path to reach pre-Covid levels and the recovery is playing out as expected. The company is keeping an excess liquidity buffer, especially considering the current economic environment.

Going forward, the company will report Q3FY21 results on January 20th. With the broader economy reviving, asset quality is likely to fare better than initially expected. The Gross NPA’s are expected in the range of 1.4-1.7%, while NPA’s would be in the 0.4-0.7% corridor. The ongoing crisis has been especially hard for banks and NBFCs. However, given its strong leadership position, the company is very well equipped to navigate these turbulent times.

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