Bajaj Finance Q4: Profit up to a record led by strong loan growth

Mumbai: Bajaj Finance said its net profit almost doubled to a record Rs 2420 crore in the quarter ended March 2022 from Rs 1347 crore led by strong loan growth, which led to a 30% growth in net interest income (NII).

The company’s total assets under management (AUM) grew by 29% to Rs 1.97 lakh crore in March 2022 from Rs 1.52 lakh crore a year earlier. NII or the core interest income the company earned from lending after adjusting interest expenses increased 30% to Rs 6,068 crore from Rs 4,659 crore a year earlier.

Income from fees and commissions also increased 51% to Rs 1164 crore from Rs 770 crore a year ago. Among the various verticals, loan against securities rose 79% to Rs 10,536 crore in the quarter ended March 2022 from Rs 5889 crore a year ago.

Commercial lending increased by 39% to Rs 11,498 crore in the quarter ended March 2022. The strong in these segments made up for a 16% fall in the auto financing business for Bajaj Finance.

Total customers in the company stood at 57.57 million as of March 2022 up 19% from 48.57 million a year ago.

Asset quality remained stable as gross NPAs dropped to 1.60% of total loans from 1.79% a year ago.

The company has a provisioning coverage ratio of 58% on NPAs.

Loan loss provisions for the quarter ended March 2022 were Rs 702 crore down from Rs 1,231 crore a year ago.

Bajaj Finance said the company has not deferred its NPA classification despite the Reserve Bank of India allowing NBFCs more time to comply with new rules pertaining to upgradation of NPA accounts only on receipt of entire overdue of the customer.

Separately, Bajaj Finance has infused Rs 2500 crore into its subsidiary company Bajaj Housing Finance in the largest round of capital infusion so far. Bajaj Housing and Bajaj Financial Securities are the two wholly-owned subsidiaries of Bajaj Finance. With this infusion, Bajaj Housing’s capital adequacy jumps to over 27% from 19.72% in March 2022 and above the regulatory required 15%.

On a standalone basis, Bajaj Housing’s net profit increased 11% to Rs 198 crore in the quarter ended March 2022 from Rs 179 crore a year ago.


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