Bajaj Finance Q1 results: Profit climbs 32% to Rs 3,437 crore; stock tanks
Bajaj Finance said net interest income (NII) for the quarter rose 26 per cent YoY to Rs 8,398 crore compared with Rs 6,640 crore in the corresponding quarter last year.
- Jul 26, 2023,
- Updated Jul 26, 2023 5:24 PM IST
Bajaj Finance on Wednesday reported a 32 per cent year-on-year rise in net profit at Rs 3,437 crore compared with Rs 2,596 crore in the same quarter last year. Net interest income (NII) for the quarter rose 26 per cent YoY to Rs 8,398 crore compared with Rs 6,640 crore in the corresponding quarter last year. New loans booked were up 34 per cent to 99.4 lakh in the June quarter compared with 74.2 lakh in the year-ago quarter. This was the highest ever new loans in a quarter.
Bajaj Finance said it delivered highest ever AUM growth of Rs 22,718 crore, booked 99.4 lakh new loans and added 38.4 lakh new customers in the June quarter. As of June 30, Bajaj Finserv App had 4.0.2 crore net users.
The NBFC said it added 95 new locations and added 12,500 distribution points. Geographic presence stood at 3,828 locations and over 1,67,000 active distribution points as on June 30.
In Q1, cost of funds stood at 7.61 per cent, an increase of 22 basis points over Q4 FY23, the NBFC said. ."Given strong ALM management and diversified balance sheet profile, net impact on NII sequentially was 11 bps. We expect gradual moderation in NII to continue through FY24," Bajaj Finance said.
Deposits book grew 46 per cent YoY and stood at Rs 49,944 crore as on June 30. In Q1, net deposit growth was Rs 5,278 crore. Deposits contributed to 21 per cent of consolidated borrowings as on June 30.
The NBFC said its gross NPAs were the lowest ever at 0.87 per cent (net NPA at 0.31 per cent) as on June 30 against 1.25 per cent (net NPA at 0.51 per cent) as on June 30. Bajaj Finance said its stage 3 assets stood at Rs 2,348 crore as on June 30 against Rs 2,539 crore as on June 30. Risk metrics across all businesses were strong except rural B2C business, it said adding that the NBFC has taken risk actions in the rural B2C business, resulting in muted growth in Q1.
Bajaj Finance delivered an annualised return on asset (ROA) of 5.42 per cent against 5.33 per cent in the year-ago quarter. Adjusted for reversal of deferred tax liability, turn on asset stood at 5.30 per cent. Bajaj Finance said it delivered annualised return on equity (ROE) of 24.47 per cent against 23.07 per cent in Q1 FY23. Adjusted for reversal of deferred tax liability, ROE was 23.95 per cent.
Following the results, the stock fell 1.56 per cent to Rs 7,486 level on BSE.
Also read: Hot stocks on July 26, 2023: Delta Corp, Suzlon Energy, Tata Motors, Adani Green Energy and more
Bajaj Finance on Wednesday reported a 32 per cent year-on-year rise in net profit at Rs 3,437 crore compared with Rs 2,596 crore in the same quarter last year. Net interest income (NII) for the quarter rose 26 per cent YoY to Rs 8,398 crore compared with Rs 6,640 crore in the corresponding quarter last year. New loans booked were up 34 per cent to 99.4 lakh in the June quarter compared with 74.2 lakh in the year-ago quarter. This was the highest ever new loans in a quarter.
Bajaj Finance said it delivered highest ever AUM growth of Rs 22,718 crore, booked 99.4 lakh new loans and added 38.4 lakh new customers in the June quarter. As of June 30, Bajaj Finserv App had 4.0.2 crore net users.
The NBFC said it added 95 new locations and added 12,500 distribution points. Geographic presence stood at 3,828 locations and over 1,67,000 active distribution points as on June 30.
In Q1, cost of funds stood at 7.61 per cent, an increase of 22 basis points over Q4 FY23, the NBFC said. ."Given strong ALM management and diversified balance sheet profile, net impact on NII sequentially was 11 bps. We expect gradual moderation in NII to continue through FY24," Bajaj Finance said.
Deposits book grew 46 per cent YoY and stood at Rs 49,944 crore as on June 30. In Q1, net deposit growth was Rs 5,278 crore. Deposits contributed to 21 per cent of consolidated borrowings as on June 30.
The NBFC said its gross NPAs were the lowest ever at 0.87 per cent (net NPA at 0.31 per cent) as on June 30 against 1.25 per cent (net NPA at 0.51 per cent) as on June 30. Bajaj Finance said its stage 3 assets stood at Rs 2,348 crore as on June 30 against Rs 2,539 crore as on June 30. Risk metrics across all businesses were strong except rural B2C business, it said adding that the NBFC has taken risk actions in the rural B2C business, resulting in muted growth in Q1.
Bajaj Finance delivered an annualised return on asset (ROA) of 5.42 per cent against 5.33 per cent in the year-ago quarter. Adjusted for reversal of deferred tax liability, turn on asset stood at 5.30 per cent. Bajaj Finance said it delivered annualised return on equity (ROE) of 24.47 per cent against 23.07 per cent in Q1 FY23. Adjusted for reversal of deferred tax liability, ROE was 23.95 per cent.
Following the results, the stock fell 1.56 per cent to Rs 7,486 level on BSE.
Also read: Hot stocks on July 26, 2023: Delta Corp, Suzlon Energy, Tata Motors, Adani Green Energy and more