Investor Presentaiton
Lead financial indicators (2/6)
Operating efficiencies
BAJAJ FINANCE LIMITED
11. In Q3, Net interest income grew by 29% to 7,655 crore as against 5,922 crore in Q3 FY23. NIM compression in Q3 over Q2
was 11 bps. Given the increase in risk weights and higher incremental cost of funds, the Company has increased rates
across all portfolios by 20-30 bps.
12. In Q3, Net total income grew by 25% to 9,298 crore as against ₹7,438 crore in Q3 FY23.
13. In Q3, Opex to Net total income improved to 33.9% versus 34.8% in Q3 FY23. The Company is working to enhance operating
efficiencies by implementing a host of GenAl capabilities and other digital initiatives.
14. Employee headcount stood at 54,281 (BFL, BHFL & BFSL) as of 31 December 2023. Company added 3,181 employees in Q3.
Annualized attrition as of 31 December 2023 was 13.8% as against 19.1% as of 31 December 2022.
Credit cost
15. In Q3, loan losses & provisions were 1,248 crore. Loan losses for Rural B2C business continued to remain elevated. AUM
growth of Rural B2C (excl. gold loan) has been brought down from 26% in March 2023 to 10% in December 2023. Urban B2C
loan losses were higher in Q3 due to lower collection efficiencies. Overall, Urban B2C portfolio remains in good health.
16. Annualized loan loss to average AUF, excluding management overlay, was 1.79% in 9M FY24. We estimate FY24 loan loss to
average AUF to hold at this level.
17. The Company holds a management and macro-economic overlay provision of 590 crore as of 31 December 2023. The
Company released 150 crore from the overlay in Q3.
18. GNPA & NNPA stood at 0.95% & 0.37% as of 31 December 2023 as against 1.14% & 0.41% as of 31 December 2022.
19. Risk metrics across all businesses were stable except Rural B2C business. The Company continues to be watchful on risk
actions in Rural B2C business.
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