Bajaj Finance, the lending and investing arm of Bajaj Finserv, on Wednesday reported the highest ever consolidated quarterly net profit of Rs 2,596 crore for the first quarter ended June 30, 2022.

Share Market Live

NSE

In the corresponding quarter last year, the company posted a net profit of Rs 1,002.4 crore. CNBC-TV18 Polls had predicted a profit of Rs 2,435.8 crore for the quarter under review.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, grew 47.9 percent YoY to Rs 6,638 crore against Rs 4,489 crore in the same period previous fiscal.

Also Read:

Tata Steel Q1 net profit falls 20.5% but beats estimates

Gross non-performing assets (GNPAs) stood at 1.25 percent in the June quarter against 1.60 percent in the March quarter. Net NPA came at 0.51 percent against 0.68 percent quarter-on-quarter. The total operating expenses to net interest income for Q1FY23 was 35.9 percent as against 30.6 percent in 01 FY22.

The company's Assets Under Management (AUM) grew by 28 percent to Rs 204,018 crore as of June 30, 2022, from Rs 159,057 crore as of June 30, 2021. The core AUM growth1 in the first quarter was Rs 11.931 crore.

The loan losses and provisions for Q1FY23 were Rs 755 crore as against Rs 1,750 crore in Q1FY22. The company holds a management and macro-economic overlay of Rs 1,000 crore as of June 30, 2022.

Also Read: L&T net profit swells 45% in Q1 as order book scales highs

The company has a provisioning coverage ratio of 60 percent on stage 3 assets and 130 bps on stage 1 and 2 assets as of June 30, 2022. The Capital adequacy ratio (including Tier-II capital) as of June 30, 2022, was 26.16 percent. The Tier-I capital was 23.84 percent.

The new loans booked during Q1FY23 grew by 60 percent to 7.42 million as against 4.63 million in Q1FY22. The customer franchise stood at 60.30 million as of June 30, 2022, as compared to 50.45 million 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 in Q1FY23.

Shares of Bajaj Finance Ltd ended at Rs 6,393.75, up by Rs 133.90, or 2.14 percent on the BSE.

Also Read: United Spirits net profit jumps five-fold to Rs 210 crore on strong consumer demand

First Published:Jul 27, 2022 3:34 PM IST