Finance major Bajaj Finance Ltd has reported 88% year-on-year growth in net profit of ₹2,781 billion for the July-Sept quarter, the highest consolidated quarterly profit ever, versus 1,481 crore profit for the year. before period.
The company’s net interest (NII) income rose 31% to £7,001 billion compared to £5,337 billion in the same period last year. Total revenue increased 29% to ₹9,972 from ₹7,735 in the same period last year.
Consolidated AUMs (assets under management) increased 31% to ₹2,18,366 billion in the second quarter of fiscal 23 compared to ₹1,66,937 billion in the second quarter of fiscal 22, the company said in an IPO today.
Bajaj Finance shares closed up 0.32% or 23.6 points today on the NSE at ₹7,404. The stock is up 2% over the past week and 3.73% over the past six months.
The Pune-based financial firm says it is on track to make all products and services fully digital by March 2023. “An excellent first half for the company in terms of balance sheet growth, portfolio quality and profitability H1 AUM growth. Confident for a strong fiscal year 2023. Phase 1 of Web 2.0 has gone live.”
In Q2FY23 the company recorded 67.6 lakh new loans versus 63.3 lakh new loans in Q2FY22, a growth of 7%. Bajaj Finance’s loan losses and provisions for the quarter were ₹734 crore. Gross NPA (non-performing assets) and net NPA were 1.17% and 0.44%, respectively, in the second quarter of fiscal 23, versus 1.25% and 0.51% in the previous quarter. The Company expects its credit losses to be 1.35-1.45% of average assets in FY23. As of September 30, 2022, it currently holds a management overlay of ₹1,000 crore.
The company’s total B2B business payouts grew 15% in the said quarter to £13,862 billion compared to £12,067 billion in the same period last year. It said the franchise added 26.1 million new customers during the quarter and is on track to add between more than 1 million new customers in FY23. During the second quarter of FY23, the Company added 99 new locations and its geographic footprint as of September 30, 2022 totaled 3,685 locations and over 1,43,300 points of sale.
Bajaj Finance’s deposit book as of September 30, 2022 was ₹39,422 billion, with net deposit growth of 5,320 crore in the second quarter. Deposits accounted for 22% of consolidated borrowing as of September 30, 2022. “The company is on track to meet its long-term goal of 25% of consolidated deposit borrowing over the medium term.”
The total number of employees of Bajaj Finance as of September 30, 2022 was 39,423, including Bajaj Finance Ltd (BFL), BHFL (Bajaj Housing Finance Limited) and Bajaj Financial Securities. In Q2, funding costs were 6.91% while the liquidity buffer was £9,288 billion. According to the company, the impact of recent rate hikes on funding costs will remain gradual given strong ALM management.
