While sharing its Q2 FY23 business update, Bajaj Finance said that consolidated net liquidity surplus stood at approximately ₹9,300 crore as of 30 September 2022 and the company’s liquidity position remains strong.
“Total customer franchise grew by 19% YoY to 63 m, although new loan bookings were down 8% QoQ. On funding side, deposits grew by 37% YoY/ 16% QoQ and BAF has reduced surplus liquidity position by 19% QoQ that can support net interest margins (NIMs). Capital consumption is higher at 110 bps during 2Q, but total CAR is still high at 25%,” said Jefferies while recommending Hold rating on Bajaj Finance shares on healthy loan growth with a target price of ₹8,000 apiece.
New loans booked during Q2 FY23 were 6.8 MM as compared to 6.3 MM in Q2 FY22. Assets under management (AUM) grew by 31% to approximately ₹218,350 crore as of 30 September 2022 as compared to ₹166,937 crore as of 30 September 2021. AUM in Q2 FY23 grew by approximately ₹14,350 crore.
The Company continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 25.1% as of 30 September 2022. Its deposit book stood at approximately ₹39,400 crore as of 30 September 2022 as compared to ₹28,720 crore as of 30 September 2021, a YoY growth of 37%.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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