Bajaj Finance Q1 Results: NII Lifts Profit By 22% But Asset Quality Worsens
Asset quality worsened, with the gross non-performing assets ratio rising to 1.03% at the end of June quarter as against 0.96% a quarter ago.
Rise in net interest income and loan book helped Bajaj Finance Ltd.'s consolidated net profit rise 22% in the quarter ended June to Rs 4,765 crore, according to an exchange filing on Thursday. During the quarter ended March, the bottom line was Rs 3,940 crore.
The net interest income increased 22% in the June quarter to Rs 10,227 crore. It was Rs 8,910 crore a quarter ago.
However, higher impairments on financial instruments, which rose to Rs 2,120 crore as against Rs 1,684 crore a year ago, capped the growth in the bottom line.
Asset quality worsened, with the gross non-performing assets ratio rising to 1.03% at the end of June quarter as against 0.96% a quarter ago. The net NPA ratio also rose to 0.5% compared with 0.44% in the prior quarter.
This is in line with how loan losses and provisions of the NBFC for the quarter rose 26% YoY to 2,120 crore. Sequentially, it was at Rs 2,300 crore.
Assets under management of Bajaj Finance grew 25% year-on-year to Rs 4.41 lakh crore.
In terms of outstanding numbers, mortgages contributed the most to the overall AUM to Rs 1.09 lakh crore, up 24% YoY, and urban business-to-consumer loans grew 29% YoY to Rs 71,628 crore. The SME lending was also up 29% YoY to Rs 40,791 crore and two and three-wheeler finance declined by 20% to Rs 19,689 crore. Rural B2C loans grew 20% to Rs 17,770 crore.
On a consolidated basis, the AUM of car loans recorded a 44% YoY growth to Rs 8,710 crore, followed by gold loans at 82% to Rs 5,494 crore.
During the June quarter, deposits of the non-bank lender rose 15% on-year to Rs 72,109 crore.
