October 17, 2023
admin
Bajaj Finance Q2 Consolidated net profit rises 28%
Bajaj Finance has reported a consolidated net profit of Rs 3,551 crore for the Q2 of the current financial year, up 28 percent from the same quarter of the previous year, missing estimates.
Bajaj Finance’s net profit rose on the back of improved net interest income, new loans booked, and improved asset quality.
Bajaj Finance said the number of loans booked during the quarter rose 26 percent to 8.53 million from 6.76 million in the corresponding period of the previous year.
Analysts had predicted a 30 percent year-on-year increase in net profit at Rs 3,626 crore for India’s leading non-banking finance company.
Its consolidated net interest income rose 26 percent on-year to Rs 8,845 crore. NII of Q2 of the previous year stood at Rs 7,002 crore.
On standalone basis, NII also increased by 26 percent to Rs 8,059 crore in July-September quarter, from Rs 6,397 crore in a year ago period.
On a consolidated basis, interest income of the Bajaj Finance in the reporting quarter, 38 percent on a quarterly basis, to Rs 11,734 crore, from Rs 8,509 crore in a year ago period.
Its interest expenses rose 53 percent on-quarter to Rs 4,537 crore in July-September.
Net interest margins compressed 14 basis points on a quarterly basis, due to the increase in cost of funds for the company in the reporting quarter.
In Q2, cost of funds of Bajaj Finance was 7.67 percent, which saw an increase of 6 bps over Q1FY24. Similarly, cost of funds of Bajaj Housing Finance also increased 3 bps on a quarterly basis in July-September.
The company has liquidity buffer of Rs 11,373 crore as of 30 September 2023.
Asset quality
Asset quality improved in the second quarter of the current financial year. Its gross NPA stood at 0.91 percent and and net NPA at 0.31 percent against 1.17 percent and 0.44 percent in the year-ago period.
Stage 3 assets stood at Rs 2,645 crore as of September 30, 2023 as against Rs 2,530 crore as of September 30, 2022.
The Company has provisioning coverage ratio of 66 percent on stage 3 assets as of September 30, 2023.
Despite the improvement in the asset quality, Bajaj Finance’s loan losses and provisions for the second quarter of the current financial year rose to Rs 1,077 crore, as against Rs 734 crore in in a similar period last year.
In Q2, net deposit growth was Rs 4,877 crore. Deposits contributed to 21 percent of consolidated borrowings as of September 30, 2023.
The company’s AUM grew 33 percent to Rs 2.9 lakh crore in Q2 from Rs 2.1 lakh crore in the year-ago period. AUM in Q2FY24 grew by Rs 20,167 crore.
>>Go to Mainboard IPOs Section: Click
>>Get Good Staff or Job, Click: Staffavailable.com
>>Interested in Used Automobiles or vintage cars? Click: BigGaddi.com
>>Get solid Guidance on Mutual fund Investments, Click: ChanakyaMFGuidance.com
>>Study Stock Research Reports, Click: AnalysisLibrary.com
>>Interested in Crossword Puzzles? Click: Magajmari.com
