Bajaj Finance Q3FY22 Preview: Analysts see profit surging at 50-60%; Net Interest Income likely to see 33% uptick

Bajaj Finance Limited is expected to release strong third quarter earnings for the financial year 2021-22 (Q3FY22) on Tuesday, January 18, 2021. The company sees a double-digit growth in top and bottom line, as majority of the analysts expect in preview report.  

Most of the analyst see the profit growing between 50-60 per cent during the October-December quarter for the financial year 2021-22. Similarly, Net Interest Income (NII) is seen to grow between 32-33 per cent the during the third quarter.  

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Domestic brokerage house ShareKhan expects, Bajaj Finance profit after tax likely to grow by 53.3 per cent to Rs 1756 crore year-on-year, while net interest margins may jump by over 33 per cent to Rs 4478 per share during the quarter. 

Bajaj Finance is one of the most preferred pick of ShareKhan from non-banking finance company space, and recommends a Buy rating with a target price of Rs 9097 per share with FY22E/FY23E EPS (earnings per share) surging by 102.2 and 174.4. 

Similarly, another domestic brokerage house Motilal Oswal estimate, the Q3 profit likely to surge over 59 per cent to Rs 18239 crore YoY and NII may grow over 32 per cent to Rs 44398 crore YoY. 

“Strong pick up in disbursements in Q3FY22, with new loan bookings estimated to be up around 13 per cent sequentially, while reduction in excess liquidity and no significant interest income reversals should aid margin,” the brokerage house said in a preview report. 

The brokerage expects, around 12 per cent quarter-on-quarter decline in credit costs in Q3FY22, and at 3 per cent for FY22, we foresee it to decline YoY, Motilal Oswal said in a report. 

It further added that the impact of Reserve Bank of India regulations on asset quality and commentary on the app ecosystem will be keenly watched.