Bajaj Finance reports 54% jump in net profit at Rs 9.23 billion in Q2

Non-banking financial company Bajaj Finance Tuesday reported a 54 per cent jump in its consolidated net profit at Rs 9.23 billion in the quarter ended September, helped by higher growth in assets under management.

The company had reported a net profit of Rs 5.98 billion in the year-ago period.

"We saw a strong growth in the quarter. Our asset under management (AUM) grew by 38 per cent," the company's managing director, Rajeev Jain, said.

It's consolidated AUM stood at Rs 1002.17 billion in the reporting quarter, compared with Rs 726.69 billion in the same period last year.

The consolidated results of the company include the results of its wholly owned subsidiaries Bajaj Housing Finance and the newly acquired Bajaj Financial Securities (BFinsec).

Total income on a consolidated basis grew by 40 per cent to Rs 42.96 billion, against Rs 30.66 billion last year.

Loan losses and provisions increased to Rs 3.15 billion, from Rs 2.21 billion in the year-ago quarter.

Gross non-performing asset (NPA) stood at 1.49 per cent, while net NPA was at 0.53 per cent.

The company saw its cost of borrowing flat at 8.21 per cent during the quarter, on a sequential basis.

On a standalone basis, the company posted a 55 per cent increase in net profit at Rs 9.2 billion, compared with Rs 5.94 billion in the year-ago quarter.

Bajaj Housing Finance's profit after tax stood at Rs 90 million in the September quarter, with asset under management at Rs 107.12 billion.

Bajaj Finance's scrip closed 1.63 per cent down at Rs 2,083.95 apiece on BSE, against 0.84 per cent decline in the benchmark.