Bajaj Finance News (Q3 Update): Deposits, AUM rise, asset quality stable
Bajaj Finance, the largest NBFC in India, yesterday updated the exchange on its December quarter numbers. Given the exceptional numbers, the stock on Wednesday afternoon was up nearly 4%. In 2021, Bajaj Finance was one of the top Sensex gainers.
Bajaj Finance Q3 Updates
Increase in AUM - The company reported a 26.3% increase in its Asset Under Management (AUM) in the Oct-Dec quarter. The AUM increased to Rs 1,81,000 crore in Q3FY22 compared to Rs 1,43,550 crore in the same period last year. Bajaj Finance booked a total of 7.4 million new loans in Q3FY22. Last year in the same period, the total number of new loans was 6 million.
Liquidity Surplus - The liquidity surplus was approximately Rs 14,300 crore in the December quarter. The company said that its liquidity position remains strong. It also reported that its Capital Adequacy ratio (CRAR) was 27% as of 31 December 2021.
Deposits - Bajaj Finance saw an increase in deposit books from Rs 23,777 crore in December 2020 to Rs 30,000 crore in December 2021. Sequentially, the deposit book increased by approximately Rs 1,250 crore.
The company has also said that it has not witnessed any adverse impact on its NPA position. In Q2, the NBFC reported a consolidated net profit of Rs 1481 crore. We will update you on its NPA and profit number once the Q3 result is out.
Bajaj Finance business update: Brokerage radar
CLSA: Global brokerage firm CLSA noted that the quarter was the strongest in terms of growth in the pandemic-era. Festive season helped Bajaj Finance to post growth in New Customer Acquisition. However, deposits slowed on a sequential basis, growing at just 3% QoQ. CLSA has a ‘Sell’ rating on the shares with a target price of Rs 6,000 on the shares.
Morgan Stanley: Global brokerage firm Morgan Stanley noted that Bajaj Finance has seen stronger-than-expected loan growth in the quarter. The firm noted that New Customer Acquisition was the highest ever at 2.6 million during the quarter. The brokerage firm has a target price of Rs 9,060 on the shares.
Kotak Securities has given a BUY call on Bajaj Finance Share with a target price of Rs 7660. Given the recent rally, the share has touched these levels on Wednesday.
ICICI Direct has given a target price of Rs 8190 on the back of its previous quarter number and management commentary.