Bajaj Finance Q4 consolidated net profit up 80% at Rs 2,420 crore

Dividend Rs 20 per share for FY22

Bajaj Finance Ltd posted an 80 per cent growth year on year (YoY) in net profit at Rs 2,420 crore for the fourth quarter ended March 2022 (Q4FY22) from Rs 1,347 crore a Q4FY21.

The consolidated net profit by 59 per cent to Rs 7,028 crore for FY22 from Rs 4,420 crore for FY21.

The board of directors has recommended a dividend of Rs 20 per share (1,000 per cent) of face value of Rs two each on equity shares for the financial year ended 31 March 2022.  Bajaj Finance Ltd’s share closed 3.31 per cent higher at Rs 7,240 per share on BSE.

The consolidated results of BFL include the results of its wholly-owned subsidiaries Bajaj Housing Finance Ltd and Bajaj Financial Securities Ltd.

The net interest income (NII) of the firm for Q4FY22 was up 30 per cent to Rs 6,068 crore from Rs 4,659 crore in Q4FY21.

The consolidated assets under management (AUM) rose by 29 per cent to Rs 1,97,452 crore at end of March 2022 from Rs 1,52,947 crore a year ago.

Its loan losses and provisions for Q4FY22 declined to Rs 702 crore in Q4FY22 from Rs 1,231 crore in Q4FY21. The provision for Q4FY22 includes an additional charge of Rs 100 crore for one large B2B commercial account.

The company holds a management and macro-economic overlay of Rs 1,060 crore as of 31 March 2022, BFL said in a statement today.

The Company has provisioning coverage ratio of 58 per cent for on stage-3 assets (non-performing assets) as of March 31, 2022. The asset quality profile improved with Gross NPAs declining to 1.6 per cent in March 2022 from 1.79 per cent a year ago. Similarly, net NPAs were down to 0.68 per cent from 0.75 per cent a year ago.

The capital adequacy ratio stood at 27.22 per cent with Tier-I capital of 24.75 per cent as of March 31, 2022.