Bajaj Finserv Ltd Share Price

Bajaj Finserv overview

Bajaj Finserv journey

• 2007: Starts Bajaj Finserv on April 30 as a separate corporation from Bajaj Auto Ltd, focusing only on the firm's financial services sector.
• 2009: On April 20, starts Bajaj Finserv & Allianz Global Investors AG (Allianz SE's asset management division) as an agreement to establish an asset management joint-venture firm in India. On October 30, receives a go-ahead from the Indian Reserve Bank in terms of a registration certificate to continue the operations of a non-deposit-taking NBFC.
• 2012: Bajaj Finserv effectively issues 1.44 crore equity stocks to existing qualified shareholders upon a rights premise on October 17, at a proportion of one equity stock for every ten equity shares owned on the date of record.
• 2017: The wholly-owned subsidiary of Bajaj Financial Holdings Limited reinforces new business strategies for undertaking activities on digital and online platforms to augment the operation of the firm's subsidiaries. Thus, the name changes to Bajaj Finserv Direct Limited.
• 2019: Bajaj Finserv Direct Limited, or BFSD, debuts its digital platform of 'FINSERVE MARKETS'.
• 2020: Establishes a completely owned subsidiary known as Bajaj Finserv Health Limited.

Bajaj Finserv – Initial Public Offer (IPO)

Bajaj Finserv products

• Consumer finance
• SME finance
• Home loan
• Commerce lending
• Vendor financing
• Rural lending
• Investment
• Partnerships and services

Bajaj Finserv business highlights

Bajaj Finserv's performance highlights:

• The total amount of new loans issued was ₹2 crore.
• The number of customers increased by 19% to a value of ₹6 crore.
• The total value of assets under management or AUM grew by 29% to ₹1,97,452 crore.
• Base AUM rose by 26% to ₹1,92,087 crore (short-term net IPO funding receivable).
• Total revenue grew by 19% to ₹31,640 crore.
• Net interest income (NII) increased by 27% to ₹21,892 crore.
• At ₹7,585 crore, overall operating costs increased by 43%.
• The ratio of Opex to NII was 34.6%.
• The operational profit before impairment grew by 20% to ₹14,307 crore.
• Financial instrument impairment fell by 20% to ₹4,803 crore.
• Profit before tax or PBT grew 59% to ₹9,504 crore.
• Profit after tax or PAT grew 59% to ₹7,028 crore.
• The capital adequacy ratio was 27.22% as of 31st March, 2022. The adequacy was 24.75% for Tier I. Both of these were significantly over the RBI criteria.

Bajaj Finserv management:

• Managing Director: Rajeev Jain
• Chief Financial Officer: Sandeep Jain
• Chief Risk Officer: Fakhari Sarjan
• Chief Human Resources & Administrative Officer: Anupam Sirbhaiya
• Deputy Chief Executive Officer: Anup Saha
• Deputy CEO: Rakesh Bhatt
• President- Debt Management Services: Deepak Bagati
• President - Rural Businesses, Fixed Deposits & Investments, Insurance Services & Distribution: Deepak Reddy
• Treasurer: M M Muralidharan

Finance industry overview:

Industry growth prospects

Bajaj Finserv growth prospects

Risks and concerns

• The stock is now trading at a rate of 3.86 times the price-to-book value as of Dec-19-2022, but it had recorded an all-time high of 7.7 times on 27th September 2021.
• Over the previous three years (FY 19-20, FY 20-21 and FY 21-22), the company has had a poor equity return of around 12.5%.
• Dividend distribution has been modest over the previous three years (FY 19-20, FY 20-21 and FY 21-22), at around 1.61% of earnings.

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