Bajaj Finance Q2 profit climbs 53% on healthy NII growth

Bajaj Finance’s consolidated net profit rose 53% to ₹1,481 crore in the second quarter from ₹964 crore in the corresponding quarter of last year.

The Net Interest Income (NII) during the second quarter increased by 28% to ₹5,335 crore as against ₹4, 162 crore in Q2FY21. Interest income reversal for the quarter, meanwhile, was ₹322 crore as compared to ₹216 crore a year ago.

Total operating expenses to net interest income for the reporting period was 38% as against 28% in the September quarter.

The company has booked 6.33 million new loans in the quarter as against 3.62 million in year-ago period.

The total assets under management (AUM) grew by 22% to ₹1.66 lakh crore at the end of second quarter from ₹1.37 lakh crore as of last year. Core AUM growth1 in Q2 was approximately ₹11,150 crore.

Customer franchise stood at 52.80 million at the end of September quarter, with the customer franchise increasing by 2.35 million in Q2FY22 as compared to 1.16 million in Q2FY1.

Loan losses and provisions during the quarter stood at ₹1,300 crore. During the quarter, the company has done accelerated write offs of ₹355 crore of principal outstanding on account of Covid-19 related stress and advancement of write off policy.

Bajaj Finance holds a management and macro-economic overlay of ₹832 crore as of 30 September 2021.

Gross non performing assets (NPA) and Net NPA at the end of the reporting period stood at 2.45% and 1.10% respectively, as against 2.96% and 1.46% as of 30 June.

The Company has provisioning coverage ratio of 55% on stage 3 assets and 155 bps on stage 1 and 2 assets as of 30 September 2021.

Meanwhile, capital adequacy ratio (including Tier-II capital) as of September quarter was 27.68%. The Tier-I capital was 24.90%.

The company’s shares on Tuesday rose over 3% to close at ₹7,880 on NSE. Since the start of the 2021, the index heavyweight’s scrip surged nearly 50%.

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