Financial results Q1 FY23 Bajaj Finance Limited

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Highest ever consolidated quarterly profit after tax of ₹ 2,596 crore in Q1 FY23

  • Assets under management crossed a milestone of ₹ 200,000 crore in Q1 FY23 and stood
    at ₹ 204,018 crore as of 30 June 2022.
    A meeting of the Board of Directors of Bajaj Finance Limited (BFL) was held today to consider
    and approve the unaudited standalone and consolidated results for the quarter ended 30 June
    2022.
    The consolidated results of BFL include the results of its wholly owned subsidiaries viz. Bajaj
    Housing Finance Limited (BHFL) and Bajaj Financial Securities Limited (BFinsec).
    CONSOLIDATED PERFORMANCE HIGHLIGHTS
    Consolidated assets under management – ₹ 204,018 crore v/s ₹ 159,057 crore ↑ 28%
    Consolidated profit after tax – ₹ 2,596 crore v/s ₹ 1,002 crore ↑ 159%
    CONSOLIDATED PERFORMANCE HIGHLIGHTS – Q1 FY23
     New loans booked during Q1 FY23 grew by 60% to 7.42 million as against 4.63 million in Q1
    FY22.
     Customer franchise stood at 60.30 million as of 30 June 2022 as compared to 50.45 million
    as of 30 June 2021, a growth of 20%. The Company recorded highest ever quarterly increase
    in its customer franchise of 2.73 million in Q1 FY23.
     Assets under management (AUM) grew by 28% to ₹ 204,018 crore as of 30 June 2022
    from ₹ 159,057 crore as of 30 June 2021. Core AUM growth 1 in Q1 FY23 was ₹ 11,931 crore.
     Net interest income for Q1 FY23 increased by 48% to ₹ 6,638 crore from ₹ 4,489 crore in
    Q1 FY22.
     Total operating expenses to net interest income for Q1 FY23 was 35.9% as against 30.6%
    in Q1 FY22.
     Loan losses and provisions for Q1 FY23 was ₹ 755 crore as against ₹ 1,750 crore in Q1
    FY22.The Company holds a management and macro-economic overlay of ₹ 1,000 crore as of
    30 June 2022.
     Profit before tax for Q1 FY23 increased by 156% to ₹ 3,503 crore from ₹ 1,366 crore in Q1
    FY22.
     Profit after tax for Q1 FY23 increased by 159% to ₹ 2,596 crore from ₹ 1,002 crore in Q1
    FY22.
     Gross NPA and Net NPA as of 30 June 2022 stood at 1.25% and 0.51% respectively, as
    against 2.96% and 1.46% as of 30 June 2021. The Company has provisioning coverage ratio
    of 60% on stage 3 assets and 130 bps on stage 1 and 2 assets as of 30 June 2022.
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1 Core AUM growth = (AUM growth for the period – short tenor IPO financing book + additional COVID-19 overlay, if any)


 Capital adequacy ratio (including Tier-II capital) as of 30 June 2022 was 26.16%. The Tier-I
capital was 23.84%.
A – Breakup of consolidated AUM and deposits book

(₹ in crore)

AUM

As of 30 June 2022 Consolidated
as of
30 June 2021 Growth

BFL
Standalone BHFL BFinsec

BFL
Consolidated

Consumer B2B – Auto Finance 9,962 – – 9,962 11,347 (12%)
Consumer B2B – Sales Finance 16,475 – – 16,475 11,175 47%
Consumer B2C 39,654 1,553 – 41,207 31,399 31%
Rural B2B 4,564 – – 4,564 2,914 57%
Rural B2C 16,740 – – 16,740 12,537 34%
SME lending 26,516 148 – 26,564 20,335 31%
Commercial lending 12,040 – – 12,040 9,011 34%
Loan against securities 10,060 – 741 10,801 6,290 72%
IPO Financing – – – – 2,942
Mortgage lending 13,970 55,724 – 65,665 51,107 28%
Total AUM 149,981 57,425 741 204,018 159,057 28%
Total AUM net of IPO Financing 149,981 57,425 741 204,018 156,115 31%

Deposits

As of 30 June 2022

Consolidated
as of
30 June 2021 Growth

BFL
Standalone BHFL

BFL
Consolidated

Deposits 33,657 445 34,102 27,972 22%
@ Approximately 20% of the consolidated borrowings and 26% of the standalone borrowings.

B – Summary of consolidated financial results

(₹ in crore)
Particulars Q1’23 Q1’22 QoQ FY’22
New loans booked (numbers in million) 7.42 4.63 60% 24.68
Assets under management 204,018 159,05
7
28% 197,45
2

Receivables under financing activity 198,352 153,14
3
30% 191,42
3
Interest income 7,920 5,954 33% 27,270
Fees, commission, and other income 1,317 688 91% 4,042
Net gain on fair value changes on investments 46 101 (55%
)
328
Total income 9,283 6,743 38% 31,640
Interest expenses 2,645 2,254 17% 9,748
Net interest income 6,638 4,489 48% 21,892
Total operating expenses 2,380 1,373 73% 7,585
Loan losses and provisions 755 1,750 (57%
)
4,803
Profit before tax 3,503 1,366 156
%
9,504
Profit after tax 2,596 1,002 159
%
7,028

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STANDALONE PERFORMANCE HIGHLIGHTS
Bajaj Finance Limited – Q1 FY23
 Assets under management grew by 25% to ₹ 149,981 crore as of 30 June 2022 from
₹ 119,567 crore as of 30 June 2021.
 Net interest income for Q1 FY23 increased by 48% to ₹ 6,140 crore from ₹ 4,153 crore in
Q1 FY22.
 Loan losses and provisions for Q1 FY23 was ₹ 748 crore as against ₹ 1,724 crore in Q1
FY22. The Company holds a management and macro-economic overlay of ₹ 780 crore as of
30 June 2022.
 Profit after tax for Q1 FY23 increased by 179% to ₹ 2,356 crore from ₹ 843 crore in Q1
FY22.
C – Summary of standalone financial results of Bajaj Finance Limited

(₹ in crore)
Particulars Q1’23 Q1’22 QoQ FY’22
New loans booked (numbers in million) 7.36 4.56 61% 24.31
Assets under management 149,981 119,567 25% 146,743
Receivables under financing activity 147,679 117,372 26% 144,276
Interest income 6,828 5,171 32% 23,729
Fees, commission, and other income 1,291 663 95% 3,882
Net gain on fair value changes on investments 27 83 (67%) 260
Total income 8,146 5,917 38% 27,871
Interest expenses 2,006 1,764 14% 7,573
Net interest income 6,140 4,153 48% 20,298
Total operating expenses 2,216 1,280 73% 7,090
Loan losses and provisions 748 1,724 (57%) 4,622
Profit before tax 3,176 1,149 176% 8,586
Profit after tax 2,356 843 179% 6,350

PERFORMANCE HIGHLIGHT OF SUBSIDIARIES
Bajaj Housing Finance Limited – Q1 FY23
 Assets under management grew by 40% to ₹ 57,425 crore as of 30 June 2022 from
₹ 40,941 crore as of 30 June 2021.
 Net interest income for Q1 FY23 increase by 77% to ₹ 594 crore from ₹ 335 crore in Q1
FY22.
 Loan losses and provisions for Q1 FY23 was ₹ 7 crore as against ₹ 26 crore in Q1 FY22.
BHFL holds a management and macro-economic overlay of ₹ 220 crore as of 30 June 2022.
 Profit after tax for Q1 FY23 increased by 96% to ₹ 316 crore from ₹ 161 crore in Q1 FY22.

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 Gross NPA and Net NPA as of 30 June 2022 stood at 0.27% and 0.11% respectively, as
against 0.28% and 0.18% as of 30 June 2021. BHFL has provisioning coverage ratio of 58%
on stage 3 assets and 77 bps on stage 1 and 2 assets as of 30 June 2022.
 Capital adequacy ratio (including Tier-II capital) as of 30 June 2022 was 24.57%.
D – Summary of standalone financial results of Bajaj Housing Finance Limited
(₹ in crore)
Particulars Q1’23 Q1’22 QoQ FY’22
Assets under management 57,425 40,941 40% 53,322
Receivables under financing activity 50,039 35,762 40% 46,482
Interest income 1,072 777 38% 3,482
Fees, commission, and other income 136 29 369% 226
Net gain on fair value changes on Investments 15 16 (6%) 59
Total Income 1,223 822 49% 3,767
Interest expenses 629 487 29% 2,155
Net Interest Income (NII) 594 335 77% 1,612
Total operating expenses 159 91 75% 471
Loan losses and provisions 7 26 (73%) 181
Profit before tax 428 218 96% 960
Profit after tax 316 161 96% 710
Bajaj Financial Securities Limited (BFinsec)
 Customers acquired during Q1 FY23 were approximately 36,500. BFinsec’s customer
franchise as of 30 June 2022 was over 367,500.
 Margin trade financing (MTF) book stood at ₹ 741 crore as of 30 June 2022 as against
₹ 200 crore as of 30 June 2021.
 Total Income for Q1 FY23 was ₹ 38 crore as against ₹ 15 crore for Q1 FY22.
 BFinsec generated profit after tax of ₹ 1 crore for Q1 FY23 against loss of ₹ 3 crore for Q1
FY22.