Bajaj Finance Q2 results: Consolidated net profit up 28% to Rs 3,551 cr

With rising cost of funds BFL expects further compression in NIMs

Bajaj Finance Ltd's (BFL) consolidated net profit for the second quarter (Q2) of 2023-24 rose by 28 per cent year-on-year (Y-o-Y) to Rs 3,551 crore, backed by healthy growth in net interest income (NII).

The Pune-based firm’s NII for Q2 expanded by 26 per cent Y-o-Y to Rs 8,845 crore, up from Rs 7,002 crore in the same period a year ago.  The cost of funds stood at 7.67 per cent, an increase of 6 basis points (bps) over Q1FY24. Sequentially, its net interest margin (NIM) compression in the second quarter was 14 bps over Q1Fy24. Bajaj Finance is likely to see further compression of 30 bps in NIMs as the cost of funds is heading northwards, the company executives said.  Bajaj Finance stock closed marginally (0.73 per cent) up at Rs 8,091 apiece on the BSE. Its capital adequacy ratio stood at 23.19 per cent with Tier-I of 21.88 per cent.  

ICICI Pru profit rises 22%ICICI Prudential Life Insurance reported a 22.43 per cent increase in net profit to Rs 244.25 crore in the quarter ended in September 30, from Rs 200 crore a tear ago. The improvement in profitability was supported by a slight uptick in the net premium income. 

The net premium income of the company rose to Rs 10,022 crore nearly 5 per cent higher from Rs 9,582 crore from the year-ago period. 

Firm to pick 26% stake in Pennant Technologies

Bajaj Finance on Tuesday said it had acquired a 26 per cent stake in Pennant Technologies, a financial technology firm, for Rs 267.50 crore. The acquisition will be on a fully diluted basis with Bajaj Finance buying 571,268 compulsorily convertible preference shares (Series A CCPS) at a face value of Rs 100 each and 422,738 equity shares from promoters and existing shareholders of Pennant. Bajaj Finance said the investment will strengthen its technology infrastructure. Aathira Varier