Bajaj Auto Finance net jumps five-fold to Rs 15 cr

Bajaj Auto Finance, the captive non-banking finance company (NBFC) of Bajaj Auto, saw its net profit jump to Rs 15.21 crore for the quarter ended 30 June, 2009 as against Rs 3.01 crore in the corresponding quarter last year.

Total income increased 48 per cent to Rs 189.85 crore while net interest income rose 75 per cent to Rs 148.22 crore on a year-on-year basis. Deployments increased 65 per cent over the figure recorded in the corresponding quarter last year to Rs 1,045.89 crore.

Rajeev Jain, chief executive officer, said, "We have seen overall demand pick-up especially in the durable financing and loans against property businesses."

However, provisions for bad loans increased to Rs 53.4 crore from 29.76 crore in the corresponding quarter of the previous year.

The NBFC finances 18-20 per cent of all two-wheelers sold by Bajaj Auto. Jain said the company remained cautiously optimistic about the future.Business in the coming quarters would depend on the monsoon seaosn since a large part of the firm’s business comes from Tier I and Tier II cities.