Bajaj Finance Q1 results: Net profit surges 159% to Rs 2,596 cr

The company's assets under management grew by 28% to Rs 2.04 trillion as of June 30, 2022

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 per cent to Rs 9,283 crore during the June quarter as against Rs 6,743 crore in 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 per cent. The company recorded 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 per cent 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 per cent during the quarter under review to 74.2 lakh from 46.3 lakh in the preceding year.

Assets Under Management (AUM) rose by 30 per cent to Rs 2.04 trillion at the end of June 2022 from Rs 1.59 trillion 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 per cent and net NPAs at 0.51 per cent, as against 2.96 per cent and 1.46 per cent, respectively at the end of June 2021.

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

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

"On April 7, 2022, the company has invested an amount of 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 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 per cent to close at Rs 6,393.75 apiece on BSE.