Bajaj Finance reports:
- Consolidated profit after tax of ₹ 3,158 crore in Q4 FY23 and ₹ 11,508 crore in FY23
- Consolidated assets under management of ₹ 247,379 crore as of 31 March 2023
- Highest ever new loans booked of 29.58 million in FY23
- Highest ever increase in customer franchise of 11.57 million in FY23
A meeting of the Board of Directors of Bajaj Finance Limited (BFL) was held today to consider and approve the audited standalone and consolidated results for the quarter and year ended 31 March 2023.
The consolidated results of BFL include the results of its wholly owned subsidiaries viz. Bajaj Housing Finance Limited (BHFL), Bajaj Financial Securities Limited (BFinsec) and its associate company viz.
Snapwork Technologies Private Limited (from 26 November 2022).
CONSOLIDATED PERFORMANCE HIGHLIGHTS
| Particulars | Q4 FY23 | Q4 FY22 | Growth | FY23 | FY22 | Growth |
| Number of loans booked (in million) | 7.56 | 6.28 | 20% | 29.58 | 24.68 | 20% |
| Customer franchise (in million) | 69.14 | 57.57 | 20% | 69.14 | 57.57 | 20% |
| Core AUM (₹ in crore) | 247,379 | 192,087 | 29% | 247,379 | 192,087 | 29% |
| Profit after tax (₹ in crore) | 3,158 | 2,420 | 30% | 11,508 | 7,028 | 64% |
| Annualized ROA | 5.4% | 5.3% | 5.3% | 4.2% | ||
| Annualized ROE | 23.9% | 22.8% | 23.5% | 17.4% |
CONSOLIDATED PERFORMANCE HIGHLIGHTS – Q4 FY23
- Number of new loans booked during Q4 FY23 grew by 20% to 7.56 million as against 6.28 million in Q4 FY22.
- Customer franchise stood at 69.14 million as of 31 March 2023 as compared to 57.57 million as of 31 March 2022, a growth of 20%. The Company’s customer franchise grew by 3.09 million in Q4 FY23.
- Assets under management (AUM) grew by 29% to ₹ 247,379 crore as of 31 March 2023 from core AUM (i.e. AUM excluding short term IPO financing receivable) of ₹ 192,087 crore as of 31 March 2022. AUM growth in Q4 FY23 was highest ever at ₹ 16,537 crore.
- Net interest income for Q4 FY23 increased by 28% to ₹ 7,771 crore from ₹ 6,061 crore in Q4 FY22.
- Operating expenses to net interest income for Q4 FY23 was 34.1% as against 34.5% in Q4 FY22.
- Loan losses and provisions for Q4 FY23 was ₹ 859 crore as against ₹ 702 crore in Q4 FY22. The Company holds a management and macro-economic overlay of ₹ 960 crore as of 31 March 2023.
- Profit before tax for Q4 FY23 increased by 31% to ₹ 4,261 crore from ₹ 3,265 crore in Q4 FY22.
- Profit after tax for Q4 FY23 increased by 30% to ₹ 3,158 crore from ₹ 2,420 crore in Q4 FY22.
- Gross NPA and Net NPA as of 31 March 2023 stood at 0.94% and 0.34% respectively, as against 1.60% and 0.68% as of 31 March 2022. The Company has provisioning coverage ratio of 64% on stage 3 assets and 118 bps on stage 1 and 2 assets as of 31 March 2023.
- Capital adequacy ratio (including Tier-II capital) as of 31 March 2023 was 24.97%. The Tier-I capital was 23.20%.
CONSOLIDATED PERFORMANCE HIGHLIGHTS – FY23
- Number of new loans booked in FY23 was highest ever at 29.58 million as against 24.68 million in FY22, recording a growth of 20%.
- Customer franchise stood at 69.14 million as of 31 March 2023 as compared to 57.57 million as of 31 March 2022, a growth of 20%. Customer franchise recorded highest ever increase of 11.57 million in FY23.
- Net interest income for FY23 increased by 32% to ₹ 28,846 crore from ₹ 21,894 crore in FY22.
- Operating expenses to net interest income for FY23 was 35.1% as against 34.7% in FY22.
- Loan losses and provisions for FY23 was ₹ 3,190 crore as against ₹ 4,803 crore in FY22. The Company holds a management and macro-economic overlay of ₹ 960 crore as of 31 March 2023.
- Profit after tax for FY23 increased by 64% to ₹ 11,508 crore from ₹ 7,028 crore in FY22.
- The Board of Directors has recommended a dividend of ₹ 30 per equity share of face value of ₹ 2 (1500%) for FY23 (Previous year ₹ 20 per equity share of face value of ₹ 2 each i.e. 1000%).
A – Breakup of consolidated AUM and deposits book
(₹ in crore)
| AUM | As of 31 March 2023 | Consolidated as of 31 March
2022 |
Growth | |||
| BFL
Standalone |
BHFL | BFinsec | BFL
Consolidated |
|||
| Two and Three-Wheeler
Finance |
12,979 | – | – | 12,979 | 10,194 | 27% |
| Urban Sales Finance | 17,627 | – | – | 17,627 | 14,977 | 18% |
| Urban B2C | 48,470 | 1,638 | – | 50,108 | 38,772 | 29% |
| Rural Sales Finance | 4,803 | – | – | 4,803 | 4,129 | 16% |
| Rural B2C | 19,457 | – | – | 19,457 | 15,301 | 27% |
| SME lending | 33,628 | 137 | – | 33,765 | 24,979 | 35% |
| Commercial lending | 15,834 | – | – | 15,834 | 11,498 | 38% |
| Loan against Securities | 14,028 | – | 1,064 | 15,093 | 10,536 | 43% |
| IPO Financing | – | – | – | – | 5,365 | |
| Mortgages | 14,173 | 67,453 | – | 77,713 | 61,701 | 26% |
| Total AUM | 180,999 | 69,228 | 1,064 | 247,379 | 197,452 | 25% |
| Core AUM (Net of IPO
Financing) |
180,999 | 69,228 | 1,064 | 247,379 | 192,087 | 29% |
| Deposits | As of 31 March 2023 | Consolidated
as of 31 March 2022 |
Growth | ||
| BFL
Standalone |
BHFL | BFL
Consolidated |
|||
| Deposits | 44,490 | 176 | 44,666 | 30,799 | 45% |
@ Approximately 21% of the consolidated borrowings and 28% of the standalone borrowings.
B – Summary of consolidated financial results
(₹ in crore)
| Particulars | Q4’23 | Q4’22 | QoQ | FY’23 | FY’22 | YoY |
| Number of new loans booked (in million) | 7.56 | 6.28 | 20% | 29.58 | 24.68 | 20% |
| Assets under management | 247,379 | 197,452 | 25% | 247,379 | 197,452 | 25% |
| Core assets under management | 247,379 | 192,087 | 29% | 247,379 | 192,087 | 29% |
| Receivables under financing activity | 242,269 | 191,423 | 27% | 242,269 | 191,423 | 27% |
| Interest income | 9,847 | 7,368 | 34% | 35,550 | 27,277 | 30% |
| Fees, commission, and other non-interest
income |
1,516 | 1,261 | 20% | 5,856 | 4,371 | 34% |
| Total income | 11,363 | 8,629 | 32% | 41,406 | 31,648 | 31% |
| Interest expenses | 3,592 | 2,568 | 40% | 12,560 | 9,754 | 29% |
| Net interest income | 7,771 | 6,061 | 28% | 28,846 | 21,894 | 32% |
| Operating expenses | 2,653 | 2,094 | 27% | 10,130 | 7,587 | 34% |
| Loan losses and provisions | 859 | 702 | 22% | 3,190 | 4,803 | (34%) |
| Share of profit of associate | 2 | – | 2 | – | ||
| Profit before tax | 4,261 | 3,265 | 31% | 15,528 | 9,504 | 63% |
| Profit after tax | 3,158 | 2,420 | 30% | 11,508 | 7,028 | 64% |
STANDALONE PERFORMANCE HIGHLIGHTS
Bajaj Finance Limited – Q4 FY23
- Assets under management grew by 28% to ₹ 180,999 crore as of 31 March 2023 from core AUM of ₹ 141,378 crore as of 31 March 2022.
- Net interest income for Q4 FY23 increased by 25% to ₹ 7,104 crore from ₹ 5,666 crore in Q4 FY22.
- Loan losses and provisions for Q4 FY23 was ₹ 803 crore as against ₹ 664 crore in Q4 FY22. The Company holds a management and macro-economic overlay of ₹ 723 crore as of 31 March 2023.
- Profit after tax for Q4 FY23 increased by 25% to ₹ 2,837 crore from ₹ 2,268 crore in Q4 FY22.
Bajaj Finance Limited – FY23
- Net interest income for FY23 increased by 30% to ₹ 26,401 crore from ₹ 20,301 crore in FY22.
- Loan losses and provisions for FY23 was ₹ 3,066 crore as against ₹ 4,622 crore in FY22. The Company holds a management and macro-economic overlay of ₹ 723 crore as of 31 March 2023.
- Profit after tax for FY23 increased by 62% to ₹ 10,290 crore from ₹ 6,350 crore in FY22.
C – Summary of standalone financial results of Bajaj Finance Limited
(₹ in Crore)
| Particulars | Q4’23 | Q4’22 | QoQ | FY’23 | FY’22 | YoY |
| Number of new loans booked (in million) | 7.50 | 6.20 | 21% | 29.28 | 24.31 | 20% |
| Assets under management | 180,999 | 146,743 | 23% | 180,999 | 146,743 | 23% |
| Core assets under management | 180,999 | 141,378 | 28% | 180,999 | 141,378 | 28% |
| Receivables under financing activity | 179,097 | 144,276 | 24% | 179,097 | 144,276 | 24% |
| Interest income | 8,283 | 6,383 | 30% | 30,142 | 23,736 | 27% |
| Fees, commission, and other non-interest
income |
1,435 | 1,236 | 16% | 5,545 | 4,143 | 34% |
| Total income | 9,718 | 7,619 | 28% | 35,687 | 27,879 | 28% |
| Interest expenses | 2,614 | 1,953 | 34% | 9,286 | 7,578 | 23% |
| Net interest income | 7,104 | 5,666 | 25% | 26,401 | 20,301 | 30% |
| Operating expenses | 2,471 | 1,943 | 27% | 9,453 | 7,093 | 33% |
| Loan losses and provisions | 803 | 664 | 21% | 3,066 | 4,622 | (34%) |
| Profit before tax | 3,830 | 3,059 | 25% | 13,882 | 8,586 | 62% |
| Profit after tax | 2,837 | 2,268 | 25% | 10,290 | 6,350 | 62% |
PERFORMANCE HIGHLIGHT OF SUBSIDIARIES
Bajaj Housing Finance Limited – Q4 FY23
- Assets under management grew by 30% to ₹ 69,228 crore as of 31 March 2023 from ₹ 53,322 crore as of 31 March 2022.
- Net interest income for Q4 FY23 increase by 40% to ₹ 631 crore from ₹ 452 crore in Q4 FY22.
- Loan losses and provisions for Q4 FY23 was ₹ 57 crore as against ₹ 38 crore in Q4 FY22. BHFL holds a management and macro-economic overlay of ₹ 237 crore as of 31 March 2023.
- Profit after tax for Q4 FY23 increased by 53% to ₹ 302 crore from ₹ 198 crore in Q4 FY22.
- Gross NPA and Net NPA as of 31 March 2023 stood at 0.22% and 0.08% respectively, as against 0.31% and 0.14% as of 31 March 2022. BHFL has provisioning coverage ratio of 64% on stage 3 assets and 70 bps on stage 1 and 2 assets as of 31 March 2023.
Bajaj Housing Finance Limited – FY23
- Net interest income for FY23 increase by 52% to ₹ 2,454 crore from ₹ 1,612 crore in FY22.
- Loan losses and provisions for FY23 was ₹ 124 crore as against ₹ 181 crore in FY22. BHFL holds a management and macro-economic overlay of ₹ 237 crore as of 31 March 2023.
- Profit after tax for FY23 increased by 77% to ₹ 1,258 crore from ₹ 710 crore in FY22.
- Capital adequacy ratio (including Tier-II capital) as of 31 March 2023 was 22.97%.
D – Summary of standalone financial results of Bajaj Housing Finance Limited
(₹ in Crore)
| Particulars | Q4’23 | Q4’22 | QoQ | FY’23 | FY’22 | YoY |
| Assets under management | 69,228 | 53,322 | 30% | 69,228 | 53,322 | 30% |
| Receivables under financing activity | 62,114 | 46,482 | 34% | 62,114 | 46,482 | 34% |
| Interest income | 1,520 | 961 | 58% | 5,269 | 3,482 | 51% |
| Fees, commission, and other non-interest
income |
65 | 97 | (33%) | 396 | 285 | 39% |
| Total Income | 1,585 | 1,058 | 50% | 5,665 | 3,767 | 50% |
| Interest expenses | 954 | 606 | 57% | 3,211 | 2,155 | 49% |
| Net Interest Income (NII) | 631 | 452 | 40% | 2,454 | 1,612 | 52% |
| Operating expenses | 167 | 147 | 14% | 630 | 471 | 34% |
| Loan losses and provisions | 57 | 38 | 50% | 124 | 181 | (31%) |
| Profit before tax | 407 | 267 | 52% | 1,700 | 960 | 77% |
| Profit after tax | 302 | 198 | 53% | 1,258 | 710 | 77% |
Bajaj Financial Securities Limited
- Customers acquired during Q4 FY23 and FY23 were approximately 41,800 and 234,100 respectively. Customer franchise as of 31 March 2023 was over 565,100.
- Margin trade financing (MTF) book stood at ₹ 1,064 crore as of 31 March 2023 as against ₹ 720 crore as of 31 March 2022.
- Total Income for Q4 FY23 and FY23 was ₹ 58 crore and ₹ 204 crore respectively.
- Profit after tax for Q4 FY23 and FY23 was ₹ 3 crore and ₹ 8 crore respectively.
