AUM growth of 29-31% for FY24
Management raised full-year AUM growth guidance from 27-29% to 29-31%, driven by strong Q1 momentum.
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Credit cost guidance of 155-165 bps for FY24
Full-year credit cost expected to be range-bound between 155-165 bps, including 6-8 bps from model redevelopment.
NIM compression of 10-15 bps in Q2 and Q3
Net interest margin expected to compress by 10-15 bps each in Q2 and Q3 due to repricing of borrowings.
New car financing to reach INR 200-250 crore per month by March 2024
New car financing business, launched in 80 cities, is expected to achieve monthly disbursements of INR 200-250 crore by exit of FY24.
AUM growth guidance maintained at 26-28% for FY25
Management reiterated AUM growth guidance of 26-28% with an upward bias towards 28%, despite elevated credit costs.
Credit cost guidance of 1.75-1.85% for FY25 with marginal upward bias
Management expects full-year credit cost between 1.75% and 1.85% of average AUM, but noted a marginal upward bias due to Q1 trends.
Cost of funds expected to peak by August/September
Management expects cost of funds to peak by August or September and then stabilize, with potential decline if rate cuts occur.
BHFL IPO awaiting SEBI clearance
Bajaj Housing Finance has filed RHP with SEBI and stock exchanges for a potential IPO, subject to market conditions.
FY26 AUM growth of 23-24%
Management revised AUM growth guidance down from 24-25% to 23-24% for FY26, citing slower MSME and auto finance growth.
Credit cost guidance of 185-195 bps for FY26
Credit costs expected to remain in the 185-195 bps range for the full year, with improvement from H2 as auto finance book winds down.
NIM expansion of ~10 bps by year-end
Net interest margin expected to expand by about 10 basis points by end of FY26, driven by liability repricing and lower deposit costs.
Deposit contribution to decline to 15-16%
Retail deposit share of balance sheet to fall from 19% to 15-16% as the company shifts to cheaper NCD and bank borrowings.
NIM compression of 25-30 bps expected for full year
Management guided for another 25-30 basis points of NIM compression over the remainder of FY24, driven by rising cost of funds and competitive pressure on yields.
ROA to sustain at 5% on exit basis
Despite NIM compression, the company expects to sustain a return on assets of 5% on an exit basis for FY24, supported by operating leverage.
Microfinance pilot to expand to 100 locations by March 2024
The microfinance pilot launched in 12 villages will scale to 100 locations by March 2024, with a target of 300 villages by March 2025.
Capital raise of ₹10,000 crore via QIP and preferential allotment
Board approved raising ₹10,000 crore, comprising ₹8,800 crore through QIP and ₹1,200 crore preferential allotment to Bajaj Finserv, to support growth.
FY25 credit cost guidance revised to ~2.05%
Net loan loss to average assets expected at 2.00-2.05% for FY25, up from earlier 1.75-1.85%.
AUM growth of 27-28% for FY25
Full-year AUM growth guided at 27-28%, with new businesses contributing 2-3%.
New customer addition of 15-16 million in FY25
Management expects to add 15-16 million new customers in FY25, marginally higher than last year's 14 million.
Non-Bajaj Auto two-wheeler AUM to replace Bajaj Auto AUM by FY27
Non-Bajaj Auto two-wheeler financing will scale to 720,000 accounts in FY26, fully replacing Bajaj Auto AUM by end-FY26/FY27.
FY26 AUM growth revised to 22%-23%
Management lowered AUM growth guidance from 24%-25% to 22%-23% due to risk actions in MSME and revised BHFL outlook.
FY26 credit cost at upper end of 1.85%-1.95%
Full-year credit cost expected to be at the upper end of the guided range, with significant improvement anticipated in FY27.
MSME business to grow 10%-12% in FY26
MSME growth moderated to 18% in Q2; full-year growth expected at 10%-12% due to deliberate volume cuts.
Cost of funds to be 7.5%-7.55% for FY26
Cost of funds improved 27bps to 7.52% in Q2; full-year expected in 7.5%-7.55% range, with NIM held flat.
Credit cost guidance of 175-185 bps
Management expects annualized loan losses to average AUM to remain in the 175-185 basis points range, consistent with pre-COVID levels.
Interest rate hike of 20-30 bps from January 1
Effective January 1, the company increased interest rates by 20-30 basis points across portfolios to mitigate higher cost of funds and risk weights.
Rural B2C growth slowed to 10%
Rural B2C portfolio growth was deliberately reduced to 10% in Q3 from 26% in Q1, reflecting risk actions to control elevated delinquencies.
KFS compliance for all products by March 2024
The company plans to implement Key Fact Statement (KFS) in vernacular languages and digital signatures for all products by March 2024.
Q4 FY25 credit cost guidance of 2.00-2.05%
Management expects loan loss to average AUF to decline to 2.00-2.05% in Q4, from 2.16% in Q3, driven by portfolio pruning and improving collection efficiency.
FY26 credit cost below 2%
If Q4 credit cost lands in the guided range, management expects FY26 credit cost to be sub-2%, barring significant macro deterioration.
FY26 balance sheet growth of ~25%
Management targets consolidated balance sheet growth of around 25% in FY26, with profit growth of 22-23%.
Rural B2C business to grow 20-23% in FY26
After returning to growth mode, the rural B2C segment is expected to grow 20-23% in the next fiscal year.
FY27 credit cost guidance of 165-175 bps
Management expects annualized credit costs to be between 165 and 175 basis points in FY27, including the impact of the permanent LGD floor changes.
AUM growth to gravitate to 22% for FY26
Full-year AUM growth expected around 22%, with MSME business taking 2-3 quarters to return to 20% growth.
800+ autonomous AI agents by next fiscal
Company plans to deploy over 800 autonomous agents across sales, operations, HR, IT, risk, and DMS in FY27.
Fee income growth to normalize to 18-20% from FY27
Core fee and commission income growth expected to settle in the 17-20% range on a volume basis from next fiscal.
AUM growth of 26%-28% in FY25
Management expects AUM to grow 26%-28% in FY25, supported by newly launched secured businesses like LAP, car finance, and tractor finance.
NIM compression of 30-40 bps over next two quarters
Net interest margin is expected to moderate by 30-40 bps from current levels due to rising cost of funds and shift to secured assets, then stabilize.
OpEx-to-income improvement of 20-40 bps
Operating expense to net interest income ratio is expected to improve by 20-40 bps from current levels as the company moves to consolidation.
Credit costs within 175-185 bps corridor
Loan loss to average AUM is expected to remain in the 175-185 bps range, in line with pre-COVID levels adjusted for regulatory changes.
AUM growth of 24-25% in FY26
Aided by new business lines launched in the last 2-3 years, with a focus on credit quality first.
Credit cost corridor of 185-195 bps for FY26
Loan loss to average AUM expected to improve from FY25 levels as early vintage metrics improve.
OPEX to NTI improvement of 40-50 bps in FY26
Driven by FinAI transformation and productivity initiatives, including fixed-term contract conversions.
Deploy 100 FinAI applications in FY26
Across revenue, cost, customer engagement, underwriting, productivity, and controllership.
AUM growth of 22-24% in FY27
Management expects AUM to grow 22-24% in FY27, aided by new businesses scaling and MSME recovery.
Credit cost guidance of 1.45-1.60% for FY27
Credit cost (revised metric) expected to trend down to 1.45-1.60% from 1.65% in Q4, driven by tailwinds from two-wheeler wind-down and MSME improvement.
ROA guidance of 4.4-4.6% for FY27
Return on assets expected to remain in the 4.4-4.6% range, supported by operating leverage and stable credit costs.
Opex to NTI improvement of 25-40 bps in FY27
Operating expense ratio expected to improve by 25-40 basis points from current levels, driven by AI-led efficiencies.