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Bajaj Finance Q2 Review - Visible Traction On Digital Platform, Omnichannel Strategy: Motilal Oswal

Bajaj Finance Q2 Review - Visible Traction On Digital Platform, Omnichannel Strategy: Motilal Oswal

<div class="paragraphs"><p>Indian rupee bank notes being exchanged. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
Indian rupee bank notes being exchanged. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Bajaj Finance Ltd.'s profit after tax was up 53% YoY and 48% QoQ to Rs 14.8b (8% miss) in Q2 FY22. While net interest income at Rs 42.9 billion (10% beat) was up 26% YoY due to higher interest income from surplus liquidity and from IPO financing, it was mitigated by higher operating expense (up 48% QoQ and 40% above our estimate).

Bajaj Finance's credit costs stood at Rs 13 billion (our estimate: Rs 11 billion), which included additional Covid-19 provisions of Rs 3.5 billion in Q2 FY22 to guard against contingencies from a potential third wave.

Gross non performing loan ratio/provision coverage ratio improved by ~50 bps/~400 bps QoQ to 2.45%/55%. The majority of restructuring was in mortgages in Q2 FY22.

Click on the attachment to read the full report:

Motilal Oswal Bajaj Finance Q2FY22 Result Update.pdf

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