#NSE0058- Bajaj Finserv: Loans, Cards, Insurance, Investments, Payments and more
As of now, Bajaj Finserv Ltd has a market capitalization of ₹2,53,000 crore and a stock price-to-earnings (P/E) ratio of 31.
Bajaj Finserv Ltd. indeed plays a crucial role as the holding company for a diverse range of financial services within the Bajaj group. Its offerings cater to various aspects of financial needs, including asset acquisition financing, general insurance for asset protection, life and health insurance for family and income protection, as well as retirement and savings solutions. With its comprehensive suite of services, Bajaj Finserv serves millions of customers, helping them meet their financial goals and secure their futures.
The ownership distribution for Bajaj Finserv Ltd. is as follows:
- Promoters: 60.69%
- Foreign Institutional Investors (FIIs): 8.42%
- Domestic Institutional Investors (DIIs): 7.33%
- Public: 23.38%
In Q4 FY24, Bajaj Finserv Ltd. demonstrated significant growth and operational improvements:
- Asset Under Management (AUM) Growth: The company witnessed a robust AUM growth of Rs. 19,647 crores during the quarter.
- Expansion: Bajaj FinServ expanded its reach by adding 53 new locations and incorporating 7,700 new distribution points, indicating a focus on expanding its customer base and market presence.
- Net Interest Income (NII): NII for Q4 FY24 stood at Rs. 8,013 crores, reflecting a substantial increase from Rs. 6,254 crores in Q4 FY23. However, there was a net interest margin (NIM) compression of 21 basis points (bps) in Q4 compared to Q3, primarily due to changes in AUM composition.
- Operating Efficiency: The company improved its operating efficiency, with Opex to Net total income ratio improving to 34.0% from 34.2% in Q4 FY23. This improvement can be attributed to the deployment of various GenAI initiatives across operations, service, and contact centers.
- Loan Losses & Provisions: Loan losses and provisions for Q4 FY24 amounted to Rs. 1,310 crore, compared to Rs. 859 crore in Q4 FY23. The loan loss to average AUM, excluding management overlay, was reported at 1.86% in Q4.
Bajaj Finserv Ltd. continued its strong performance and growth trajectory in various aspects:
- Asset Under Management (AUM) Growth: As of March 31, 2024, the AUM stood at Rs. 3,30,615 crore, reflecting a remarkable growth of 34% compared to the previous year’s AUM of Rs. 2,47,379 crore. This substantial increase underscores the company’s ability to attract and manage assets effectively.
- Geographic Presence and Distribution Points: The company expanded its geographic presence to 4,145 locations and over 198,000 active distribution points, compared to 3,733 locations and over 154,000 distribution points in the previous year. This expansion indicates a concerted effort to enhance market penetration and accessibility.
- Digital User Base: The Bajaj Finserv App experienced significant growth, with its net user base increasing to 5.24 crore compared to 3.55 crore users as of March 31, 2023. This indicates a growing adoption of digital channels among customers for accessing financial services.
- Risk Management and Provisioning: BFL maintained prudent risk management practices, holding a management and macro-economic overlay of Rs. 300 crore as of March 31, 2024. During the quarter, the company utilized Rs. 127 crore towards strengthening its Expected Credit Loss (ECL) model and released Rs. 163 crore towards loan losses and provisions, demonstrating proactive risk mitigation measures.
- Asset Quality: BFL maintained a healthy asset quality, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) standing at 0.85% and 0.37%, respectively, as of March 31, 2024. These figures represent a slight improvement from the previous year, showcasing effective credit risk management practices.
- Capital Adequacy: The company’s capital adequacy remained strong at 22.52% as of March 31, 2024, with Tier-1 capital at 21.51%. This indicates a robust financial position and the ability to support future growth initiatives while meeting regulatory requirements.
Disclaimer-
It’s important to note that discussions like are for informational purposes only and should not be taken as specific We are not SEBI registered investment advisor. Whether analyzing a company’s financial health, examining market trends, or discussing technical chart patterns, the goal is to provide insights and perspectives that can help you make more informed decisions according to your own research and investment strategy. Always consider consulting with a financial advisor or conducting thorough personal research before making any investment decisions.
