Bajaj Finance profit more than doubles to Rs 2,596 cr in June quarter

Bajaj Finance Ltd on Wednesday reported its highest-ever consolidated quarterly net profit at Rs 2,596 crore for the June quarter, helped by robust income due to brisk loan growth.

The company had reported a net profit of Rs 1,002 crore in the year-ago period.

Total income rose by 38 percent to Rs 9,283 crore during the June quarter as against Rs 6,743 crore in the corresponding quarter last year, Bajaj Finance said in a regulatory filing on Wednesday.

''Customer franchise stood at 60.30 million (6.03 crore) as of June 30, 2022, as compared to 50.45 million (5.05 crore) as of June 30, 2021, a growth of 20 percent. The company recorded the highest ever quarterly increase in its customer franchise of 2.73 million (27.3 lakh) in Q1 FY23,'' it said.

Interest income grew by 33 percent in the first quarter of FY23 to Rs 7,920 crore when compared with Rs 5,954 crore in the same quarter of FY22.

New loans booked by the Non-Banking Finance Company (NBFC) jumped by 60 percent during the quarter under review to 74.2 lakh from 46.3 lakh in the preceding year.

Assets Under Management (AUM) rose by 30 percent to Rs 2,04,018 crore at the end of June 2022 from Rs 1,59,057 crore in the previous year.

The NBFC arm of the Bajaj group said its loan losses and provisions for the quarter came down at Rs 755 crore as against Rs 1,750 crore last fiscal.

On the asset quality, the company's gross NPAs (Non-Performing Assets) during the period under review fell to 1.25 percent and net NPAs at 0.51 percent, as against 2.96 percent and 1.46 percent, respectively at the end of June 2021.

The capital adequacy ratio (including Tier-II capital) in the June quarter was 26.16 percent. The Tier-I capital was 23.84 percent.

The consolidated earnings include results from subsidiaries - Bajaj Housing Finance and Bajaj Financial Securities.

''On April 7, 2022, the company invested several Rs 2,500 crore in Bajaj Housing Finance (BHFL), a wholly-owned subsidiary of the company by subscribing to 1,828,822,235 equity shares of the face value of Rs 10 each for cash at Rs 13.67 per share, offered on rights basis,'' Bajaj Finance said.

On Wednesday, shares of the company rose 2.14 percent to close at Rs 6,393.75 apiece on BSE.