Bajaj Finance on Tuesday reported a robust set of numbers, posting net profit of Rs 2,420 crore for the three months to March, a whopping rise of 80% year-on-year. With this the Pune-based Non Banking Financial Company (NBFC) exits FY22 on a high note.
The profit after tax for the year to March stood at Rs 7,028 crore, a jump of 59%. The consolidated assets under management (AUM) grew by 29% to Rs 1.97 trillion at the end of March 2022, an increase of 29%.
The good performance was accompanied by improving asset quality. The lender’s gross NPAs and net NPAs, at the end of March 2022, came in at 1.60% and 0.68% respectively, as against 1.79% and 0.75% as of March 2021. Loan losses and provisions for Q4 FY22 were Rs 702 crore as against Rs 1,231 crore in Q4 FY21. “The company holds a management and macro-economic overlay of Rs 1,060 crore as of March 31, 2022,” a company release said.
Business was strong during the quarter, as seen in the growth of the net interest income which increased by 30% y-o-y to Rs 6,068 crore. The lender’s new loans grew a smart 15%; The lender’s capital adequacy ratio (including Tier-II capital) as of March 2022 was 27.22%. The Tier-I capital stood at 24.75%.
The Bajaj Finance management highlighted that the quarter had been an excellent one in which the balance sheet had grown and the portfolio quality and profitability had also been good. “Omnipresence agenda continued to accelerate in Q4. Overall, excited about FY23 prospects,” it added.