Bajaj Finance Q4 preview: Profit may grow around 40% on lower provisions but NII may decline Non-banking finance company Bajaj Finance is expected to report around 40 percent year-on-year (YoY) growth in March quarter profit on account of lower provisions. Net interest income for the quarter is expected to fall 3-5 percent YoY in Q4 FY21 with around 4 percent YoY loan growth and contraction in net interest margin (NIMBajaj Finance has reported a 5 percent QoQ and 4 percent YoY growth in its loan book. "We expect the company to deliver 20 bps QoQ NIM expansion (though down 60 bps YoY) to reflect falling funding costs and lower liquidity drag (liquidity surplus down about Rs 3,000 crore QoQ). This is likely to drive 8 percent QoQ growth in NII," said Kotak Institutional Equities which expects a 45 percent YoY growth in profit and a 3.4 percent YoY decline in net interest income. Motilal Oswal sees a 39 percent YoY growth in profit and a 4.7 percent YoY decline in net interest income in March quarter