Bajaj Finance Q2 PAT jumps 88% to Rs 2,781 cr

The NFBC's consolidated net profit jumped 88% to Rs 2,780.65 crore on 29% rise in total income to Rs 9,972.63 crore in Q2 FY23 over Q2 FY22.

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

Profit before tax surged 87% year on year to Rs 3,752.29 crore recorded in the quarter ended 30 September 2022.

New loans booked during Q2 FY23 grew 7% to 6.76 million as against 6.33 million in the same quarter last year.

The company's net interest income (NII) for the September quarter rose 31% to Rs 7,001 crore from Rs 5,337 crore posted in the corresponding quarter previous year. Total operating expenses to net interest income for Q2 FY23 was at 35.9% as against 38.1% reported in Q2 FY22.

Assets under management (AUM) grew by 31% to Rs 218,366 crore as of 30 September 2022 from Rs 166,937 crore as of 30 September 2021. AUM in Q2 FY23 grew by Rs 14,348 crore.

Customer franchise stood at 62.91 million as of 30 September 2022 as compared to 52.80 million as of 30 September 2021, registering a growth of 19%. The company's customer franchise grew by 2.61 million in Q2 FY23.

Loan losses and provisions slipped 43.5% to Rs 734 crore in Q2 FY23 as against Rs 1,300 crore recorded in the year ago quarter. The company holds a management and macro-economic overlay of Rs 1,000 crore as of 30 September 2022.

On the asset quality front, Gross NPA and Net NPA as of 30 September 2022 stood at 1.17% and 0.44% respectively, as against 2.45% and 1.10% as of 30 September 2021. The company has provisioning coverage ratio of 62% on stage 3 assets and 120 bps on stage 1 and 2 assets as of 30 September 2022.

Capital adequacy ratio (including tier-II capital) as of 30 September 2022 was at 25.13%. The tier-I capital was 23.14%.

Deposits book stood at Rs 39,422 crore as of 30 September 2022. In Q2, the net deposit growth was Rs 10,702 crore. Deposits contributed 22% of consolidated borrowings as of 30 September 2022.

Overall stage 2 assets stood at Rs 3,155 crore as of 30 September 2022 as against Rs 3,569 crore as of 30 June 2022. Overall stage 3 assets stood at Rs 2,530 crore as of 30 September 2022 as against Rs 2,539 crore as of 30 June 2022.

Bajaj Finance is engaged in lending and allied activities. It focuses on consumer lending, small and medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits and value-added services.

The scrip rose 0.69% to end at Rs 7,429.25 on the BSE.

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