Announcement under Regulation 30 (LODR)-Meeting Updates
Pursuant to Regulation 30 of the SEBI Listing Regulations, 2015, please find enclosed herewith Notice of 31st Annual General Meeting of the members of the Company scheduled to be held on 19 July 2018 at the registered office of the Company. Further, please find enclosed herewith 31st Annual Report for the financial year 2017-18 including Business Responsibility Report and other documents.
Indian NBFCs like Bajaj Finance are eating the Banking Sector's lunch
By Suhani Adilabadkar NBFC biggie Bajaj Finance has risen 60% YOY in net profits in the most recent March quarter, to the envy of many private sector bank biggies over the past one year. Denied a banking license in 2016, Bajaj Finance belongs to a different progeny of the financial services industry. Non Banking Financial Companies have become an integral part of the Indian financial services sector, accounting for about 13-14% of total credit market. Overview The bureaucracy of PSU banks and rising NPAs have helped NBFCs step in and compete Bajaj Finance, Sundaram Finance have emerged as key players in the sector GST and RERA have dented profitability of two main segments, MSME & real estate Affordable housing, education and commercial vehicles expected to drive growth momentum, with NBFC sector expected to garner 18-20% of the total credit market by 2022 The NBFC Growth Explosion In simple terms, an NBFC cannot accept demand deposits, but engages in other activities usually considered banking - such as giving out loans and advances, leasing, insurance business, acquisition of shares, debentures. The Indian NBFC sector has had a dream run over the past few years, racing at a CAGR of 18% till it hit the wall that was the government’s demonetization drive in November 2016. In case you need to buy a TV, Refrigerator, AC, two wheeler, personal loan for marriage or education, the NBFC offerings come in handy with the relatively tech driven and hassle free loan experience. NBFCs have thus penetrated in semi urban and rural areas taking advantage of the rising middle-class and their growing standard of living. Apart from the ever-growing retail consumption segment, Micro, Small & Medium Enterprises (MSME), have become highly dependent on NBFC sector for their credit needs. The NBFC focus on digital technology, data analytics and semi urban & rural areas has augmented their loan book more than three times over the past 4-5 years for MSME sector. To a large extent, NBFCs owe their growth to the debt laden inefficient PSU banks which created latent credit demand due to its bureaucratic machinery. NBFCs over the years have developed the ability to provide customized products & services entwined with innovation, higher digital technology, local adaptability and cost efficiency. Bajaj Finance, Shriram Transport, Sundaram, and others With a 1.4 billion population, the 11522 NBFCs that exist as on September 2017 seem to be less. All major NBFC diversified players have created a niche for themselves, catering to diverse needs through customized products & services. Bajaj Finance, a leading NBFC is mainly accessed for consumer durables, Shriram Transport is known for commercial vehicle finance, Cholamandalam Finance for equipment financing, Sundaram Finance for automotive (Truck) financing whereas Mahindra & Mahindra Financial Services has specialized in tractor financing. Bajaj Finance has been the market hot favorite due to higher profit & AUM growth and lower NPAs. Net Profit growth was 61% and Net Interest Income jumped 40% YOY in March quarter FY18. Gross & Net NPAs were at 1.48% & 0.38% respectively in Q4 FY18. Though Sundram Finance also has stable asset quality, Net Profit declined 7% YOY in Q4 FY18. Muthoot Finance & Manapuram Finance are the major players providing loans against gold. Manappuram finance has stable asset quality with GNPAS & NPAs at 0.70% & 0.30% respectively & AUM growth at 15% YOY. Muthoot Finance on the other hand scores at profitability front with 40% YOY jump whereas Manapuram declined 18%. Asset quality deterioration is higher for Muthoot finance with Gross NPAs at 7% & AUM yearly growth also at 7%. Housing Finance sector has around 80 players constituting big Daddy HDFC and NBFC players namely Gruh Finance, DHFL, Canfin Homes, PNB Housing, GIC housing & India Bulls Housing Finance. PNB housing tops the chart with 45% YOY PAT growth followed by GIC housing, India Bulls Housing Finance & Gruh Finance at 28%, 16% & 18% respectively in March quarter FY18. Dewan housing reported de-growth of 86% & Canfin homes quarterly numbers was muted at 6% YOY PAT growth in Q4 FY18. Challenges and Growth Prospects The Indian banking sector reported Gross NPAs to the tune of Rs. 10 lakh crore or 11% of total advances by the end of the fiscal 2018. Most of the PSU banks have reported negative numbers in March quarter and witnessed shareholder wealth erosion over the last few months. Private sector banks including ICICI and Axis are battling ethical issues, and have also become cautious on asset quality front. The NBFC sector on the other hand has maintained its asset quality prudently over the past three years with strict regulations kicking in a phased manner from 2014 with respect to NPA recognition, which is now 90 days in line with banking industry. However this did result in higher NPAs for the sector further impacted by GST and RERA denting profitability of its two main segments, MSME & real estate over the last one year. In addition to that, RBI has given NBFC License to fintech firms like zerodha, a technology-driven zero brokerage firm & Eduvanz Financing, a skill development loan provider. Last but not the least, P2P platforms have been given NBFC space heating up the entire array of players in the industry. In spite of all these challenges, the growth momentum as maintained as NBFC sector is expected to garner 18-20% of the total credit market by 2022. This growth would be driven by affordable housing sector, commercial vehicles, MSME segment and education & personal loans. Global private-equity firm, Carlyle’s decision to sell its stake in PNB Housing which has doubled in market valuation in just 3 years gives a clear picture of growth achieved by the NBFC sector. In April, small NBFC firm, Arman Financial Services catering to MSME & two wheeler financing has received its first round of funding of Rs. 567 Mn from SAIF Partners India, giving a peek in the growth prospects of the Indian NBFC industry as a whole. The NBFC sector can no longer be regarded as a DAVID battling out a GOLIATH - it is looking increasingly like the debt laden Banking GOLIATH will have togive way to growth driven by digital technology, artificial intelligence, complex data analytics which will ultimately lead to higher financial inclusion. Suhani Adilabadkar is a Research Analyst registered with SEBI ((INH200003240)) She has done PGDBA (Finance), MS (Finance) and a Fellowship from Insurance Institute of India. She maintains a blog at oasisfundamentals.blogspot.in. Disclaimer: Investing in stock markets is subject to market risks. Neither Trendlyne nor the author is liable for losses including consequential losses, claims, or expenses incurred by third parties from following research reports and advisory analysis available on Trendlyne. Intimation Under Regulation 29 Of The SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015
Pursuant to Regulation 29 of the SEBI Listing Regulations, 2015, notice is hereby given that a meeting of the Board of Directors of the Company will be held on Thursday, 19 July 2018, inter alia, to consider the unaudited financial results for the quarter ending 30 June 2018. This is to further inform you that as per the Company's Code of Conduct to regulate, monitor and report trading by insiders, the trading window for dealing in the securities... Bajaj Finance hits record high; technicals suggest more upside
Shares of Bajaj Finance hit a record high, and technicals suggested more upside. The country's largest consumer finance company by market-cap rose as Submission And Publication Of Quarterly Financial Results
This is to inform you that, pursuant to Regulations 33 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company will be submitting and publishing quarterly and year to date consolidated financial results in addition to standalone financial results, for FY2018-19. Announcement under Regulation 30 (LODR)-Newspaper Publication
Pursuant to Regulation 30 of the SEBI Listing Regulations, this is to inform you that the Company has completed the despatch of intimation letter to the members to claim dividends whose shares are liable to be transferred to DEMAT Account of the IEPF Authority and an advertisement to this effect is published in English and Marathi newspaper dated 8 June 2018 for the information of members in accordance with IEPF Rules.... Q4 results: Bajaj Finance profit suggests no dearth of growth, stock gains
With strong AUM increase, the company posted one of its highest quarterly profit growth; expansion in rural lending to aid future earnings Intimation Of Book Closure Under Regulation 42 Of The SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015
Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Member and Share Transfer Books of the Company will remain closed from Saturday, 7 July 2018 to Thursday, 19 July 2018 (both days inclusive) for taking record of the Members of the Company for the purpose of payment of Dividend of Rs. 4 per share of face value of Rs. 2 each (200%) and for Annual General Meeting. Announcement under Regulation 30 (LODR)-Investor Presentation
Investor Presentation for the quarter ended 31 March 2018. Board recommends Dividend
Bajaj Finance Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 17, 2018, inter alia, has recommended a dividend of Rs. 4 per equity share of face value of Rs. 2, subject to approval of the shareholders at the 31st Annual General Meeting (AGM) to be held on July 19, 2018. Dividend, if declared by the shareholders at the AGM, will be credited/despatched between July 24, 2018 to July 27, 2018.