Bajaj Finance on Wednesday reported 155% on-year rise in consolidated net profit for the quarter ended 30 June 2022, beating street estimates. Company’s net profit surged to Rs 2,533.40 crore from Rs 993.85 reported in the same quarter of the previous year. Net interest income (NII) for the quarter under review increased by 48% on-year to Rs 6,638 crore, up from Rs 4.489 crore in the year ago quarter. New loans booked during the quarter grew by 60% to 74.2 lakh as against 46.3 lakh in the corresponding year-ago quarter.. Customer franchise stood at 6.03 crore registering, a growth of 20%. The company recorded the highest ever quarterly increase in its customer franchise of 2.73 million in Q1FY23.
Gross, net NPA falls, AUM crosses Rs 2 lakh crore
Bajaj Finance’s assets under management (AUM) crossed a milestone of Rs 2 lakh crore in the quarter and stood at Rs 2.04 lakh crore crore as of June 30, growing by 28%. Company’s loan losses and provisions came in at Rs 755 crore as against Rs 1.750 crore in the year-ago quarter. The company holds a management and macro-economic overlay of Rs 1,000 crore, Bajaj Finance said. Gross non performing assets (NPA) and net NPA stood at 1.25% and 0.51%, respectively, as against 2.96% and 1.46% as of the same period last year. The company said it has provisioning coverage ratio of 60% on stage 3 assets and 130 basis points on stage 1 and 2 assets.
Subsidiaries report strong quarter
Meanwhile, the company’s total operating expenses to net interest income for the June quarter was at 35.9% as against 30.6% in Q1FY22. Capital adequacy ratio (including Tier-II capital) for the quarter was at 26.16%, while the Tier-I capital was 23.84%. Among subsidiaries, Bajaj Housing Finance recorded 96% growth in net profits, while Bajaj Financial Securities reported PAT of Rs 1 crore against loss of Rs 3 crore for Q1FY22.
Standalone net profit jumps 168% on-year
On a standalone basis, Bajaj Finance posted a net profit of Rs 2.293.07 crore in Q1FY23 rising by 168% on-year from Rs 834.33 crore in Q1FY22. Net interest income for Q1 FY23 increased by 48% to Rs 6,140 crore from Rs 4,153 crore in Q1FY22. Following the earnings report, Bajaj Finance share price rose 2.29% on NSE to close at Rs 6,408.90 apiece.