Bajaj Finance Q2 PAT up 53% YoY to Rs 1,481 crore

Bajaj Finance reported 53% rise in consolidated net profit to Rs 1,481 crore on a 19% rise in total income to Rs 7,732 crore in Q2 FY22 as compared with Q2 FY21.

Net interest income (NII) rose by 28% to Rs 5,335 crore in the second quarter from Rs 4,162 crore recorded in the same period last year. Interest income reversal for the quarter was Rs 322 crore as compared to Rs 216 crore in 02 FY21.

Total operating expenses to net interest income for Q2 FY22 was 38.1% as against 27.8% in Q2 FY21.

New loans booked during Q2 FY22 were 6.33 million as against 3.62 million in Q2 FY21.

Customer franchise stood at 52.80 million as of 30 September 2021 as compared to 44.11 million as of 30 September 2020, a growth of 20%. The company's customer franchise increased by 2.35 million in Q2 FY22 as compared to 1.16 million in Q2 FY21.

Loan losses and provisions declined by 24% YoY to Rs 1,300 crore in Q2 FY22. While the company wrote back provisions worth Rs 175 crore on - on stage 1 and stage 2 assets, provisions on staqe 3 assets and write offs surged 347% YoY to Rs 1,475 crore during the period under review.

During the quarter, the company has done accelerated write offs of Rs 355 crore of principal outstanding on account of COVID-19 related stress and advancement of write off policy. The company holds a management and macro-economic overlay of Rs 832 crore as of 30 September 2021.

Profit before tax in Q2 FY22 stood at Rs 2,004 crore, up by 54% from Rs 1,305 crore in Q2 FY21.

Gross NPA and Net NPA as of 30 September 2021 stood at 2.45% and 1.10% respectively, as against 2.96% and 1.46% as of 30 June 2021. The company has provisioning coverage ratio of 55% on stage 3 assets and 155 bps on stage 1 and stage 2 assets as of 30 September 2021.

Capital adequacy ratio (including Tier-II capital) as of 30 September 2021 was 27.68% and the Tier-I capital was 24.90%.

Assets under management (AUM) grew by 22% to Rs 166,937 crore as of 30 September 2021 from Rs 137,090 crore as of 30 September 2020. Core AUM growth in Q2 FY22 was approximately Rs 11,150 crore.

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 advanced 2.68% to end at Rs 7849.15 on the BSE today.

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