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Bajaj Finance Ltd (BFL) reported a 84 per cent year-on-year (yoy) jump in third quarter standalone net profit on the back of healthy growth in net interest income, fees and commission income and other operating income.
A 20 per cent decline in loan loss provisions also boosted the bottomline.
The non-banking finance company recorded a standalone net profit of ₹1,934 crore in the reporting quarter against ₹1,049 crore in the year ago quarter.
Net interest income rose 41 per cent yoy to ₹4,363 crore (₹3,103 crore in the year ago quarter).
Fees and commission income was up 27 per cent yoy to ₹843 crore (₹665 crore). Other operating income increased seven times to ₹294 crore (₹42 crore).
Loan loss provisions were 20 per cent lower at ₹995 crore (₹1,245 crore).
Company’s AUM
Assets under management (AUM) of company, which provides loans to the consumer, SME, commercial, and rural segments, increased 21 per cent yoy to ₹1,32,913 crore as of December-end 2021 against ₹1,09,598 crore as of December-end 2020.
BFL booked 73.50 lakh new loans during the quarter against 60 lakh in the year ago quarter.
Employee benefit expenses were up about 50 per cent yoy to ₹920 crore (₹612 crore). Other operating expenses jumped about 82 per cent to ₹485 crore (₹267 crore).
The company said, as a matter of prudence, it has written-off principal outstanding of ₹213.35 crore in the reporting quarter, and corresponding interest outstanding (including capitalised interest) of ₹49.37 crore, by utilising the available expected credit loss (ECL) provision including management overlay.
Meanwhile, the consolidated net profit of BFL soared 85 per cent to ₹2,125 crore in the third quarter against ₹1,146 crore in the year ago period. The consolidated results include the financial results of subsidiaries Bajaj Housing Finance and Bajaj Financial Securities.
Consolidated AUM rose 26 per cent yoy to ₹1,81,250 crore as of December-end 2021 against ₹1,43,550 crore as of December-end 2020.
Meanwhile, the company’s board approved raising funds, inter alia, by way of debt issue/ issue of non-convertible securities as a part of the proposed increase in overall borrowing limit from ₹ 1.60 lakh crore to ₹2.25 lakh crore, subject to approval of the shareholders by postal ballot.
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