Bajaj Finance Ltd: Robust Performance in Q3 FY24


Bajaj Finance Ltd has demonstrated a commendable financial performance in the third quarter of the ongoing fiscal year 2023-24 (FY24). The company reported a substantial 22.40% year-on-year (YoY) rise in consolidated profit, reaching Rs 3,638.95 crore compared to Rs 2,973 crore in the same period last fiscal.

During Q3 FY24, Bajaj Finance experienced a robust growth trajectory in its revenue from operations, soaring by 31.28% to Rs 14,161.09 crore, up from Rs 10,787.25 crore in Q3 FY23. Additionally, the Assets Under Management (AUM) registered a notable 35% increase, reaching Rs 3,10,968 crore as of December 31, 2023, compared to Rs 230,842 crore in Q3 FY23.

The company’s net interest income witnessed a substantial uptick, growing by 29% in Q3 FY24 to Rs 7,655 crore, up from Rs 5,922 crore in Q3 FY23. This reflects a robust financial health, underlining Bajaj Finance’s ability to generate interest income on its assets.

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In terms of asset quality, Bajaj Finance maintained a disciplined approach. The gross Non-Performing Asset (NPA) and net NPA in Q3 FY24 stood at 0.95% and 0.37%, respectively, showing an improvement from 1.14% and 0.41% in the corresponding period last fiscal. The provisioning coverage ratio of 62% on stage 3 assets further indicates the company’s commitment to managing risks effectively.

The pre-provisioning operating profit surged by 27% in Q3 FY24, reaching Rs 5,539 crore, up from Rs 4,351 crore in Q3 FY23. This substantial growth underscores Bajaj Finance’s operational efficiency and ability to generate profits before accounting for provisions.

Bajaj Finance’s Q3 FY24 results depict a resilient and thriving financial institution, showcasing consistent growth in key financial parameters. The company’s prudent risk management practices, coupled with robust operational performance, position it favorably in the dynamic financial landscape. As Bajaj Finance continues to navigate the economic landscape, its steadfast commitment to maintaining asset quality and driving financial growth remains evident.