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Bajaj Finance Q1 profit declines to Rs 843 cr; net interest income rises 8%

Bajaj Finance's gross NPA and net NPA as of June 30 stood 2.96 per cent and 1.46 per cent, respectively; assets under management stood at Rs 1.59 lakh crore at the end of Q1

Loan losses and provisions for Q1 FY22 rose to Rs 1,750 crore against Rs 1,686 crore in Q1 FY21 Loan losses and provisions for Q1 FY22 rose to Rs 1,750 crore against Rs 1,686 crore in Q1 FY21

Bajaj Finance reported a consolidated profit after tax of Rs 1,002 crore for the quarter ended June 30 as compared to Rs 962 crore recorded during the same quarter last year. On a standalone basis, the company's profit declined to Rs 843 crore in Q1 FY22 against Rs 870 crore in Q1 FY21.

The consolidated net interest income (NII) for Q1 rose 8 per cent to Rs 4,489 crore against Rs 4,152 crore in Q1 FY21. The company's assets under management stood at Rs 1.59 lakh crore as compared with Rs 1.38 lakh crore during the same period last year. New loans booked during Q1 FY22 stood at 4.63 million as against 1.75 million in Q1 FY21, the company said.

The customer franchise crossed a milestone of 50 million and stood at 50.45 million as of June 30, 2021 as compared to 42.95 million as of June 30, 2020, a growth of 17 per cent. The company acquired 1.88 million new customers in Q1 FY22 as compared to 0.53 million in Q1 FY21.

Loan losses and provisions for Q1 FY22 rose to Rs 1,750 crore against Rs 1,686 crore in Q1 FY21. "During the quarter, the company has done accelerated write-offs of Rs 113 crore of principal outstanding on account of COVID-19 related stress. The company holds a management overlay and macro provision of Rs 483 crore as of June 30," Bajaj Finance said in a statement.

The gross NPA and net NPA as of June 30 stood at 2.96 per cent and 1.46 per cent, respectively, against 1.40 per cent and 0.50 per cent as of June 30, 2020.

On a standalone basis, the company's assets under management grew by 12 per cent to Rs 1,19,567 crore as of June 30 from Rs 1,06,584 crore as of June 30, 2020. The net interest income for Q1 FY22 rose 6 per cent to Rs 4, 153 crores against Rs 3,917 crore in Q1 FY21.

Bajaj Finance shares declined 0.84 per cent to Rs 5,965.15 from its previous session close of Rs 6,015.40 on the National Stock Exchange.

Also read: Bajaj Finance mobilises close to Rs 3,500 crore amid second COVID wave