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Bajaj Finance Ltd saw its first quarter net profit rise 27 per cent, thanks to higher interest income earned by the non-banking finance company on its loans.
In the April-June period, the Pune-based NBFC posted a net profit of Rs 176 crore against Rs 139 crore a year earlier. Net interest income, the difference between interest earned and interest expended, increased 37 per cent to Rs 601 crore.
Total income increased 33 per cent during the quarter to Rs 932 crore.
Loan deployment continued to remain robust for the NBFC in the consumer (41 per cent year-on-year growth) and small and medium enterprises (39 per cent) segments.
However, deployments in the commercial segment continued to show stress reflecting a slowdown in manufacturing activity and industrial output.
Commercial segment deployment includes the company’s financing of infrastructure, construction equipment and auto-components.
In a reflection of more people approaching NBFCs to meet their loan demands quickly, Bajaj Finance added close to a million customers in the first quarter.
Shares of Bajaj Finance closed at Rs 1,369.35, down 2.47 per cent on the Bombay Stock Exchange on Thursday.
Bajaj Finserv
Bajaj Finserv’s first quarter net profit rose 43 per cent jump on the back of robust growth in it’s general insurance and NBFC segment. In the quarter ended June 30, 2013, the financial services company posted a net profit of Rs 279 crore against Rs 195 crore, a year ago. The life insurance segment for the company continued to struggle in line with the industry trend. Total revenue grew seven per cent to Rs 3, 465 crore. Shares of Bajaj Finserv closed at Rs 639.35, up 1.01 per cent on the Bombay Stock Exchange.
s atyanarayan.iyer@thehindu.co.in
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