Bajaj Finance Jul-Sep net rises 46% at Rs 408 cr

Non-banking finance company Bajaj Finance today reported a 46 per cent jump in net profit at Rs 408 crore in quarter ended September, helped by higher loan growth across all segments.

The company had reported a profit after tax of Rs 279 crore in the year-ago period.

"The growth was broad-based. Consumer business grew by 52 per cent, SME at 14 per cent, commercial at 61 per cent and rural at 195 per cent," the company's managing director Rajeev Jain said.

Total asset under management grew 38 per cent to Rs 52,332 crore from Rs 37,964 crore.

Total income for the period was up 39 per cent to Rs 2,366 crore from Rs 1,701 crore in the year-ago period.
 

Gross non performing loas was at 1.58 per cent as against 1.88 per cent, while net NPA stood at 0.43 per cent from 0.57 per cent.

The provisioning coverage ratio stood at 73 per cent as of September 30.

The company follows NPA recognition policy of 120 days overdue as required by the RBI guidelines.

Loan losses and provisions for second quarter grew 23 per cent to Rs 169 crore from Rs 137 crore.

Capital adequacy ratio including tier II capital stood at 21.48 per cent. The tier I capital was at 14.97 per cent.

In the quarter, the company raised Rs 1,955 crore by way of tier II capital to augment its capital base.