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Bajaj Finance today posted a 2.6-fold rise in its consolidated net profit for Q1-FY23 to ₹2,596 crore—its highest ever profit after tax for a quarter—owing to strong loan growth and a fall in provisions.
Assets under management of the lender crossed the ₹2 lakh crore during the quarter, growing 28 per cent on year. The standalone AUM of the company was up 25 per cent at ₹1.5 lakh crore.
The consolidated results of Bajaj Finance include the earnings for the wholly-owned subsidiaries Bajaj Housing Finance and Bajaj Financial Securities. Bajaj Finance booked 74.2 crore loans in the reporting quarter, as against 46.3 crore in Q1-FY22. The customer base stood at 603 crore as of June 30 compared with 505 crore a year ago.
Highest growing segment
Within the consolidated loan book, loans against securities was the highest growing segment at 72 per cent, followed by rural B2B loans at 57 per cent and consumer sales finance loans at 47 per cent. Consolidated net interest income for the quarter increased 48 per cent y-o-y to ₹6,638 crore.
The non-bank lender reported loan loss and provisions of ₹755 crore for Q1-FY23, lower than ₹1,750 crore in the year ago. As of June 30, the company held management and macro-economic overlay of ₹1,000 crore.
On a standalone basis, Bajaj Finance’s loan loss and provisions for Q1-FY23 were ₹748 crore, with management overlay of ₹780 crore as of June 30.
Gross NPA ratio for the consolidated book improved to 1.25 per cent from 2.96 per cent, and the net NPA ratio to 0.51 per cent from 1.46 per cent in the year ago period. The provisioning cover on stage 3 assets was at 60 per cent at the end of June.
Bajaj Finance’s capital adequacy ratio stood at 26.16 per cent, of which tier-I capital was 23.84 per cent.
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