Loan growth recovery, customer base growth: Bajaj Finance Q4 updates
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- Credit growth recovered sequentially to 6.6% in Q421
- Customer base grew 14% year-on-year to € 48.6 million with the addition of 2.3 million customers
- The capital adequacy ratio remains high at 28.4%
With the start of the earnings season in the fourth quarter, Rue expects positive earnings momentum. Bajaj Finance, one of the biggest players in the consumer credit industry, recently released its Q4FY21 updates to the stock exchanges.
Loan growth recovered sequentially to 6.6% in Q421, compared to an average pre-covid quarterly growth of 8.5%. Overall growth remained weak at 4% on an annual basis. New loans recorded during the quarter amounted to 5.5 million in Q4FY21 compared to 6 million in Q4FY20. As a result, new loans were down 8% on both a QoQ and YoY basis.
The company’s deposit book stood at 25,800cr at T4FY21 against 21,427 cr at T4FY20. Deposits grew 9% T / T and 20% year-on-year. The company’s three-year CAGR is 50%.
The company remains well capitalized with a capital adequacy ratio of approximately 28.4% as of March 31, 2021. The liquidity position of the company remains strong. The excess liquidity stood at 16,000crore as of March 31, 2021. Assets under management stood at 153,000 crore in T4FY21, compared to 147,000crore in T4FY20. AUM in the fourth quarter increased by 9,500 crore. AUM growth in line with street estimates thanks to higher ticket size.
The company’s customer base grew 14% year-over-year to 48.6 million. The number of franchise customers as of March 31, 2021 stood at 48.6 million compared to 42.6 million as of March 31, 2020. The number of new customers of the company increased by 21% to 2.3 million in Q4FY21 compared to 1, 9 million at T4FY20
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