Bajaj Finance Q2 Net up 18% on cost cutting, higher advances

Bajaj Finance today reported an 18 per cent jump in net profit at Rs 197 crore in the three months to September, driven by higher disbursals and cost control measures.
"Strong disbursals continue to be the key driver for increase in profit. Expenses control during the quarter also helped," Bajaj Finance Chief Executive Rajeev Jain told PTI from Pune.
Deployment during the second quarter under review rose 50 per cent to Rs 7,816 crore from Rs 5,200 crore. Asset under management grew 41 per cent to Rs 28,004 crore from Rs 19,829 crore in the same period last year.
Total income expanded 29 per cent to Rs 1,242 crore from Rs 964 crore in the year-ago period.

The non-banking finance company saw some pressure on its asset quality as gross NPAs dropped to 1.41 per cent from 1.25 percent, while
net NPAs stood at 0.48 per cent from 0.27 per cent a year ago.

"There was one large infrastructure account of Rs 50 crore, which became NPA during the period," Jain said, adding, the company made a provision of Rs 7-8 crore for the account in the quarter.
Loan losses and provisions rose 54 per cent to Rs 80 crore from Rs 52 crore in the same period last year.
"The company continues to provide for loan losses in excess of RBI requirements. The portfolio remained healthy," he said.

The Pune-based NBFC's capital adequacy ratio stood at 19.30 per cent after it raised tier II capital of Rs 453 crore during the quarter. Jain said the company was well capitalised and may not go for any fresh fund raising in this fiscal.
The Bajaj Finance scrip rose 2.5 per cent to Rs 2,748.85 on BSE, whose benchmark Sensex shed 34 points.