One of the top-non banking finance companies of India, BajajFinance, has carried on a firm path of good performance towards the third quarter of the 2022-23 financial year. The NBFC has shown steady growth over the recent quarter, displaying genuine resilience against the general slowdown in the economy that led to a deterioration in other financial institutions’ performance.
The total assets under management of Bajaj Finance were highly grown by 34% this year which ranks up to Rs. 19 billion dollars surfaced after the release of the film. By the month of March 2022, the Indian film “Bhool Bhulaiya” had generated 639 crores of rupees. This is an increase over the 32% growth rate observed in the last quarter, which gives a hint of faster growth as opposed to the previous growth.
The signal seen by the increasing volume of AUM is pretty much with the capacity of the company to continue the growth of its loan book by attending to the credit needs of both retail and SME customers. Every quarter, the customer base of Bajaj Finance were growing at 21% and reached approximately 83.64 million people.
Though the loan disbursements as a whole saw a 4 % rise as compared to the previous year, the percentage of self-employment from Enterprise Funds, a microfinance scheme, also saw a depletion of 15% during the year. for full fiscal year 78.7 thousand crores are proposed with 0.8 percent lower loans booked to be of 7.87 million limited number of loan products due to the RBI restrictions. On the flip side an analyst points to the strength that the market should bounce back after imposition of the sanctions by regulators. Bajaj Finance‘s biggest asset is its vast pool of customers. This will enable the company to implement strategies such as cross-selling other financial services.
It is on the credit side, the total deposits made up Rs. In comparison to March 2021, where deposits amounted to Rs. 53,490 crores, showing a substantial 34% rise, the total bank savings accounts amounted to Rs. 60,100 crores as of March 2022. The company’s asset position continued to showcase a healthy status with a surplus of Roughly Rs.15,700 crores. It is thus equipped to push for increased capital injection to fill the future quarters gap for business expansions. Bajaj Finanace’s sturdy balance sheet and stable cash flows enable it to bear and withstand the economic upheavals with solidity.
Even the experts believe Bajaj Finance ltd to have a quite durable as its top leadership position in consumer lending, vendor discipline, and perfect asset quality make it a big player. Global investment house Jefferies limited held ‘Buy’ rating on share after quarterly results update which means another investment house holding “Buy” is the target price of Rs. 9,400. Brokerage was buoyed by the firm’s strong performance in both asset growth and customer franchise during the quarter.
Managing director at Bajaj Finance, Rajeev Jain, said the NBFC continued to see another strong quarter of balanced growth across all the businesses and at the same time, high asset quality was also maintained. He sees no reason why the company cannot take full advantage of opportunities coming from the credit formalizing trend that is gradually becoming a force to be reckoned with in India. Building for the future, the company is striving to reach deeper into the retail lending category and at the same time joining only select SME lenders.
The Bajaj Finance has remained tough since the inception of the Covid-19 pandemic through strict market conditions by fast adapting the business model as responding to change. The financial stability of this business was a true testament of its expertise in fulfilling client needs and exercising appbase to engage in opportunities even during the economic shocks. Already one of the most reputed makers in the unsecured sector of shadow banking, the company is well poised to achieve its vision; it wants to become the most reliable finances across India.
