Bajaj Finance Credit Analysis-Weekly Credit Analysis

 

Bajaj Finance Ltd Financial performances

Parameters (Rs billion)	Q1FY23	Q1FY22	% Growth
NII	61.4	41.53	47.84%
PAT	23.56	8.43	179.48%
AUM	1499.81	1195.67	25.44%
CRAR	26.16%	28.57%
Leverage	3.9	3.8
GNPA	1.25%	1.86%
NNPA	0.51%	1.46%

 

Parameters (Rs billion)	FY22	FY21	% Growth
NII	202.98	161.00	26.07%
PAT	63.5	39.56	60.52%
AUM	1467.43	1154.18	27.14%
CRAR	27.22%	28.34%
Leverage	4.9	4.7
NNPA	0.68%	0.75%

 

Recently traded bond yield levels

Date	ISIN	Coupon (%)	Yield (%)	Maturity
12-Jul-22	INE296A07RB5	7.10	6.28	10-Feb-23
12-Jul-22	INE296A07QN2	0.00	5.50	2-Sep-22
14-Jul-22	INE296A07RB5	7.10	6.23	2-Oct-23
15-Jul-22	INE296A07QN2	0.00	5.37	9-Feb-22
21/Jul/22	INE296A07QN2	0.00	5.60	9-Feb-22
22-Jul-22	INE296A07QH4	7.70	6.12	28-Dec-22
25-Jul-22	INE296A07QH4	7.70	6.11	28-Dec-22
27-Jul-22	INE296A07QX1	7.35	6.23	11-Oct-22
27-Jul-22	INE296A07QN2	0.00	6.00	9-Feb-22
27-Jul-22	INE296A07RB5	7.10	6.50	2-Oct-23
28-Jul-22	INE296A07RB5	7.10	6.48	2-Oct-23
29-Jul-22	INE296A07RB5	7.10	6.10	2-Oct-23

 

 

Bajaj Finance Limited is an Indian financial services company which operates in the segments like lending, asset management, wealth management and insurance. This company belongs to Bajaj Holdings & Investments Limited group.

 

Credit Rating- Bajaj Finance Limited has been rated as AAA by CRISIL, India Rating & ICRA.

 

Capitalization-Bajaj Finance has been able to maintain comfortable capitalization in past years. This can be evident from its capital adequacy ratio which stood at 26.16% as of 30^th June 2022 as compared to 27.22% as of 31^st March 2022.

 

Robust Operating performance- During Q1FY23, Bajaj Finance registered 47% annual growth� in net interest income and 179% growth in net profit. During FY22, its NII grew by 26% while net profit increased by 60.52% on yearly basis.

 

Improvement in Asset Quality- As of 30^th June 2022, net NPA stood at 0.51% as compared to 0.68% as of 31^st March 2022.