Bajaj Finance posted a net profit of ₹2,624 crore for Q3 FY23, 36 per cent higher year-on-year, led by strong disbursements and strong growth in net interest income (NII)

NII for the quarter was 22 per cent higher at ₹6,759 crore. The company said NII growth would have been 26 per cent after adjusting ₹203 crore earned on IPO financing in the corresponding quarter of the previous year, which has since been discontinued due to change in regulation.

Assets under management of the NBFC grew 27 per cent to ₹1.7 lakh crore as of December 31.

The annualized return on average assets for Q3 was 6.5 per cent against 6.1 per cent a year ago, and the annualized return on average equity also improved to 22.2 per cent from 20.0 per cent.

Consolidated results

On a consolidated basis, Bajaj Finance posted its highest ever quarterly profit of ₹2,973 crore, a growth of 40 per cent YoY. The consolidated results include wholly-owned subsidiaries Bajaj Housing Finance, Bajaj Financial Securities and its associate company Snapwork Technologies.

New loans booked during Q3 were the highest ever at 7.84 million on a consolidated book. The number of customers grew 19 per cent to 66.05 million as of December 31.

Consolidated AUM was 27 per cent higher at ₹2.3-lakh crore, whereas NII growth was at 24 per cent to ₹7,435 crore.  

Consolidated loan losses and provisions for Q3 were ₹841 crore, lower than ₹1,051 crore in the year ago period. Of this, Bajaj Finance accounted ₹811 crore. The company held management and macro-economic overlay of ₹1,000 crore as of December 31, of which, ₹758 crore was held by Bajaj Finance.

Gross NPA ratio of the consolidated book improved to 1.14 per cent from 1.73 per cent. The net NPA ratio at 0.41 per cent was also better than 0.78 per cent a year ago. Provision coverage ratio on stage 3 assets was 64 per cent, and 116 bps on stage 1 and 2 assets as of December 31.

Consolidated capital adequacy ratio was at 25.14 per cent, of which tier-I capital was 23.28 per cent.