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Bajaj Finance & Bajaj Finserv Q4 results today: Key things to watch out for

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Bajaj Finance and Bajaj Finserv will be reporting their fourth-quarter earnings on Thursday. Here are the key expectations:

Bajaj Finance and Bajaj Finserv will be reporting their fourth-quarter earnings on Thursday. Here are the key expectations:
  • The key thing to watch in Bajaj Finance has always been the loan growth. Last quarter, the company saw a bit of a hiccup in terms of asset quality. Gross non-performing asset (NPA) improvement in the previous quarter will be positive.
  • The loan growth is expected to be between 35 percent and 40 percent on a Y-o-Y basis. Last quarter it was at 40.5 percent but this time around one should not be surprised if the loan growth declines sequentially given the fact that an entire festive season was in Q3 and that was perhaps the best quarter for the loan growth. Sequentially, it is expected to report a decline in the lower single digit.
  • Net interest margin (NIM) movement will be watched very closely. CNBC-TV18’s poll suggests net interest income (NII) growth of 41 percent YoY and about 50 percent growth in the net profits.
  • For Bajaj Finserv, the new business premium growth in life insurance will be the key thing to watch - anywhere between 20 percent and 25 percent will be positive.
  • General insurance business growth is expected to be around 30-35 percent and growth in assets under management (AUM) of general business will be in double digits, more than 20 percent while for life insurance it can be at lower single digits.
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