Bajaj Finance Q1 profit more than doubles to Rs2,596 crore
Premium- Its net interest income increased 48% to Rs6,638 crore in the three months through June, as against Rs4,489 crore in Q1 of the previous financial year
MUMBAI : Consumer financier Bajaj Finance Ltd on Wednesday reported a more-than-doubling of its June quarter net profit to ₹2,596 crore, owing to higher net interest income and lower provisions.
Its net interest income (NII) increased 48% to ₹6,638 crore in the three months through June, as against ₹4,489 crore in Q1 of the previous financial year. In Q1 FY23, Bajaj Finance said it clocked the highest-ever new customer acquisition, adding 2.73 million new customers. Its customer franchise stood at 60.3 million as of 30 June and the company said it is confident of adding 9-10 million new customers in FY23.
“An excellent quarter for the company across balance sheet growth, portfolio quality and profitability. Overall, strong start to the fiscal. Back to all long-term guidance metrics for the last three quarters and on track to go fully digital across all products and services on app (January 2023) and web (March 2023)," the company said in a regulatory filing.
In Q1, the company saw a core assets under management (AUM) growth of ₹11,931 crore, growing across all lines of businesses. Its core AUM was up 31% at ₹2.04 trillion, as against ₹1.56 trillion as of 30 June 2021. In the June quarter, Bajaj Finance said it booked 7.42 million new loans as against 4.63 million in Q1 FY22.
“Competitive intensity remained elevated across products and the company continues to protect its margin profile across businesses. The company has started increasing pricing across products gradually from June 2022," it said.
Its deposit book stood at ₹34,102 crore as on 30 June 2022 and contributed 20% of consolidated borrowings. During the quarter, with rising interest rates, the company said it has revised its deposit rates upwards by 55-70 bps.
“The company is accelerating retail deposits acquisition to achieve its long-term goal of 25% of consolidated borrowings from deposits," it said.
The lender’s gross non-performing assets and net non-performing assets stood at 1.25% and 0.51% respectively, as on 30 June, as against 1.6% and 0.68% as on 31 March. In the June quarter, the lender’s loan losses and provisions were at ₹755 crore, including an impact of ₹190 crore towards one large B2B commercial account written off in Q1. The company said it expects its loan losses at 1.35-1.45% of average assets in FY23.
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