Bajaj Finance rises after robust Q3 performance

Shares of Bajaj Finance were trading 3.78% higher at Rs 7,620.10 on BSE in early afternoon trade after reporting strong business update for third quarter of fiscal year 2022.

The NBFC major's customer franchise grew nearly 20% to 55.4 million on 31 December 2021 as compared to 46.3 million as of 31 December 2020. The company's customer franchise increased by 18% to 2.6 million in Q3 FY22 as compared to 2.2 million in Q3 FY21.

New loans booked during Q3 FY22 were at 7.4 million, rising 23% from 6 million in Q3 FY21. Assets under management (AUM) stood at approximately Rs 181,300 crore as of 31 December 2021, up 26% from Rs 143,550 crore as of 31 December 2020. AUM in Q3 FY22, adjusted for IPO financing receivable grew by approximately Rs 14,500 crore.

Consolidated liquidity surplus stood at approximately Rs 14,300 crore as of 31 December 2021. The company's liquidity position remains strong. The company continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 27% as of 31 December 2021. The company's deposit book stood at approximately Rs 30,000 crore as of 31 December 2021 as compared to Rs 23,777 crore on 31 December 2020. Deposit book in Q3 FY22 grew by approximately Rs 1,250 crore.

Bajaj Finance is engaged in lending and allied activities. It focuses on consumer lending, small and medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits and value-added services.

The company reported 53% rise in consolidated net profit to Rs 1,481 crore on a 19% rise in total income to Rs 7,732 crore in Q2 FY22 as compared with Q2 FY21. Net interest income (NII) rose by 28% to Rs 5,335 crore in the second quarter from Rs 4,162 crore recorded in the same period last year.

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