Bajaj Finance on Tuesday reported a consolidated net profit of Rs 2,125.29 crore, up 85% in the quarter ending 31 December, 2021. The non-banking finance company had posted a net profit of Rs 1145.98 crore in the year-ago period.
On standalone basis, the company's net profit increased 84.42% to Rs 1933.85 crore from Rs 1048.58 crore in the corresponding quarter last year.
Net Interest Income (NII) grew by 40% to Rs 6,000 crore from Rs Rs 4,296 crore in the corresponding period last fiscal. Interest income reversal for the quarter was Rs 241 crore as compared to Rs 450 crore in Q3FY21.
Assets under management (AUM) grew by 26% to Rs 181,250 crore as of 31 December 2021 from Rs 143,550 crore as of 31 December 2020. The company also posted the highest ever quarterly Core AUM growth of Rs 14,700 crore in the said quarter.
The total operating expenses to net interest income for Q3FY22 was 34.7% as against 32.3% in the corresponding quarter last fiscal.
On asset quality, the company stated that Gross NPA and Net NPA as of 31 December 2021 stood at 1.73% and 0.78% respectively, as against 2.45% and 1.10% as of 31 September 2021. The company has provisioning covers provisioning coverage ratio of 56% on stage 3 assets and 156 bps on stage 1 and 2 assets as of Q3FY22.
It also noted, "During the quarter, the Company has changed its NPA classification criteria from number of EMI outstanding to Days Past Due approach in line with the RBI circular dated 12 November 2021 "Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances Clarifications". This change did not have any negative impact on the Company's NPA."
Moreover, Bajaj Finance's loan losses and provisions for Q3FY22 stood at Rs 1,051 crore as against Rs 1,352 crore in Q3FY21.
During the quarter, the company has done write-offs of Rs 163 crore of principal outstanding on account of COVID-19 related stress. "The Company holds a management and macro-economic overlay of Rs 1,083 crore as of 31 December 2021." it added.
Furthermore, the company has also stated that it plans to raise funds by issuing non-convertible securities as a part of the proposed increase in overall borrowing limit from Rs 160,000 crore to Rs. 225,000 crore, subject to approval of the shareholders.
Shares of Bajaj Finance closed at 1.34% lower at Rs 7,747.15 apiece on BSE today.
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