Bajaj Finance share price jumps after strong quarterly results

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Updated: Jan 29, 2020 5:46 PM

Bajaj Finance share price jumped 5.09% to trade at Rs 4,427 during the day, backed by a strong financial performance reporting a 52% jump in quarterly profits for the quarter ended December 31.

Positive growth in Net Interest Income (NII) and Loan growth helped Bajaj Finance report Quarterly consolidated profit at Rs 1,614 crore.

Bajaj Finance share price jumped 5.09% to trade at Rs 4,427 during the day, backed by a strong financial performance reporting a 52% jump in quarterly profits for the quarter ended December 31. Positive growth in Net Interest Income (NII) and Loan growth helped Bajaj Finance report Quarterly consolidated profit at Rs 1,614 crore as compared to Rs 1,060 crore from Q3 FY19. NII grew by 42% to Rs 4,537 crore in Q3 of FY20 from Rs 3,206 crore in Q3 of FY19, the company said in its BSE filing. New loans booked showed an increase of 13% to reach 7.67 million from 6.77 million a year ago.

Bad loans for Bajaj Finance grew marginally with Gross NPA increasing from 1.55% to 1.61% and Net NPA up from 0.62% to 0.70%. Loan losses and provisions rose to Rs 831 crore from Rs 594 crore in the quarter ended September. Total operating expenses to net interest income for Q3 FY20 was 33.9% against 34.9% in 03 FY19. During the quarter, Bajaj Finance made an accelerated provision of Rs 85 crore in its loan against securities portfolio.

The firm reported that Assets under management (AUM) grew by 35% to Rs 145,092 crore as of 31 December 2019 from Rs 107,507 crore as of 31 December 2018. Rural lending grew 49 per cent, while commercial lending was laggard, growing at 10 per cent. Bajaj Finance’s rural lending has been the largest among peers. Deposit book of the company grew by 76% to touch Rs 20,235 crore. Bajaj Finance reported a profit after tax of Rs 3,995 in 2018-19. The firm said that there is some uptick in their consumption categories since December.

Meanwhile, the company appointed Deepak Bagati as Chief Risk Officer in place of Fakhari Sarjan. The Board of Bajaj Finance also approved investment in the equity capital of Bajaj Housing Finance, a wholly-owned subsidiary of the company, amounting to Rs 1500 crore. Anand Rathi shares & Stock Brokers, reacting to the results said, “overall the results are in line with our expectations.”

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