Bajaj Finance records PAT of Rs 1,002 crore in Q1 FY22

Bajaj Finance reported 4% rise in consolidated net profit to Rs 1,002 crore on 1% increase in total income to Rs 6,743 crore in Q1 FY22 over Q1 FY21.

Net Interest Income (NII) for Q1 FY22 increased by 8% to Rs 4,489 crore as against Rs 4,152 crore in Q1 FY21. Interest income reversal for the quarter was Rs 451 crore as compared to Rs 306 crore in Q1 FY21, up 47.4% YoY.

Total operating expenses to net interest income for Q1 FY22 was 30.6% as against 27.9% in Q1 FY21. During the quarter, the company took several actions to reduce its operating expenses to partially mitigate the financial impact caused by the second wave.

Loan losses and provisions for Q1 FY22 was Rs 1,750 crore as against Rs 1,686 crore in Q1 FY21. During the quarter, the company has done accelerated write offs of Rs 113 crore of principal outstanding on account of COVID-19 related stress. The company holds a management overlay and macro provision of Rs 483 crore as of 30 June 2021.

Profit before tax in Q1 FY22 stood at Rs 1,366 crore, up by 4% from Rs 1,310 crore in Q1 FY21.

Gross NPA and Net NPA as of 30 June 2021 stood at 2.96% and 1.46% as against 1.40% and 0.50% as of 30 June 2020. The company has provisioning coverage ratio of 51% on stage-3 assets and 174 bps on stage 1 and 2 assets as of 30 June 2021.

Capital adequacy ratio (including Tier-II capital) as of 30 June 2021 was 28.57%. The Tier-I capital was 25.41%.

Assets under management (AUM) grew by 15% to Rs 159,057 crore (including IPO financing receivables of Rs 2,942 crore) as of 30 June 2021 from Rs 138,055 crore as of 30 June 2020. Core AUM growth in Q1 FY22 was approximately Rs 4,100 crore.

The company's deposit book rose by 39% to Rs 27,972 crore as on 30 June 2021 from Rs 20,061 crore as on 30 June 2021.

Bajaj Housing Finance recorded 75% jump in net profit to Rs 161 crore on a 9% rise in total income to Rs 822 crore in Q1 FY22 over Q1 FY21.

Net Interest Income for Q1 FY22 increase by 38% to Rs 335 crore from Rs 243 crore in Q1 FY21.

Gross NPA and Net NPA as of 30 June 2021 stood at 0.28% and 0.18% as against 0.08% and 0.05% as of 30 June 2020. The company has provisioning coverage ratio of 36% on stage 3 assets and 87 bps on stage 1 and 2 assets as of 30 June 2021.

Consolidated assets under management (AUM) grew by 15% to Rs 159,057 crore (including IPO financing receivables of Rs 2,942 crore) as of 30 June 2021 from Rs 138,055 crore as of 30 June 2020. Core AUM growth in Q1 FY22 was approximately Rs 4,100 crore.

Bajaj Finance's standalone assets under management (AUM) grew by 12% to Rs 119,567 crore as of 30 June 2021 from Rs 106,584 crore as of 30 June 2020.

Bajaj Financial Securities (BFinsec) recorded total income of Rs 14.98 crore in Q1 FY22 as against Rs 2.88 crore in Q1 FY21. It made a net loss of Rs 3.23 crore for Q1 FY22.

BFinsec acquired 52,504 new retail and HNI customers in Q1 FY22. Customer franchise as of 30 June 2021 stood at 95,128.

The board of Bajaj Finance has approved appointment of Pramit Jhaveri, as an additional and independent director for a period of 5 consecutive years effective from 1 August 2021.

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 slipped 1.24% to end at Rs 5937.90 on the BSE today. On a year-to-date (YTD) basis, the stock has gained 12.12% while the benchmark Sensex has added 9.31% during the same period.

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