According to the MD, the liquidity crisis could not be blamed on IL&FS but this was more because of Dewan Housing Finance and Indiabulls and their inability to roll over assets.
Bajaj Finance (BFL) on Tuesday reported a 48% year-on-year jump in standalone PAT to `1,022.73 crore during Q3FY19. However, there was a 61% increase in loan losses and provisions during the quarter to `448 crore from `277.21 crore in Q3FY18. The total standalone income was up 40% to `4,673.04 crore.
The company also reported its highest-ever quarterly consolidated profit for the third quarter ending December 31, 2018. BFL’s PAT jumped 54% to `1,060 crore while total consolidated income increased by 48% to `4,995 crore.
Consolidated numbers included performance of Bajaj Housing Finance, which completed its first full year of operations and had AUM of `14,040 crore as on December 31. The total income of BHFL was `339 crore and PAT was at `36 crore during Q3FY19.
Rajiv Jain, MD, Bajaj Finance, said this increase in provisions was mainly on account of `45 crore of accelerated provisions on account of IL&FS and a few other accounts as a measure of prudence. Gross NPA and net NPA were at 1.55% and 0.62% respectively with provisioning coverage ratio at 60%. The company’s AUM grew by 26% to `96,248 crore as on December 2018. “The third quarter was a tough one because of supply side issues but we should continue to grow and the company was in a strong position,” Jain said.
Growth during the quarter was secular and granular and the company added around `10,000 crore in net assets and in tough liquidity conditions, Jain said.
The company reported the highest-ever loans during a quarter at 6.7 million loans and added 2.5 million new customers. Strong assets and customer momentum had contributed to the growth, he said.
The firm had demonstrated management of the liability side of the balance sheet and this quarter did not belong to the asset side, Jain said. According to the MD, the liquidity crisis could not be blamed on IL&FS but this was more because of Dewan Housing Finance and Indiabulls and their inability to roll over assets.
BFL’s B2B consumer finance rose by 40% to `23,184 crore while consumer B2C grew by 47% to `20,642 crore while mortgage lending was up 37% to `30,886 crore. Rural lending was up 73% to `8,841 crore.