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Bajaj Finance Q3 Results: Net Profit Rises 84% On Higher Income

Bajaj Finance's consolidated net profit rose 84% year-on-year to Rs 2,125 crore in Q3.

Customers shop for a washing machine at a store in Bengaluru. Photographer: Namas Bhojani/Bloomberg
Customers shop for a washing machine at a store in Bengaluru. Photographer: Namas Bhojani/Bloomberg

Bajaj Finance Ltd.’s net profit rose in the third quarter on higher income.

The consumer-focused non-bank lender's standalone earnings rose 84% over the preceding year to Rs 1,934 crore in the October-December period, according to its exchange filing. That compares with the Rs 2,156-crore consensus estimate of analysts tracked by Bloomberg.

  • Consolidated net profit rose 85% year-on-year to Rs 2,125 crore, against the Rs 2,008-crore forecast.

  • Consolidated total income stood at Rs 8,535 crore, up 28% year-on-year.

The lender’s assets under management increased 26% over the year ago to Rs 1.81 lakh crore. Sequentially, Bajaj Finance added Rs 14,700 crore worth loans to its AUM, the highest ever by the company.

Outstanding deposits for Bajaj Finance rose 28% year-on-year to Rs 30,481 crore, the company disclosed as part of its quarterly results.

Asset quality improved, too. Gross non-performing assets ratio fell 72 basis points sequentially to 1.73%. Net NPA fell 32 basis points quarter-on-quarter to 0.78%.

The company said its gross NPA and net NPA have dropped to pre-Covid levels. Bajaj Finance said it has raised the management overlay provision for the quarter to Rs 1,083 crore compared with Rs 832 crore during the preceding three months. This was to protect the company from any adverse impact of the third wave.

For the full year, the company expects its management overlay provision to be around Rs 4,800-5,000 crore. Management overlay provision refers to any provisions the management takes, keeping in mind potential future hits to the balance sheet.

Bajaj Finance's board also approved a plan to infuse equity capital worth Rs 2,500 crore in Bajaj Housing Finance Ltd. and Rs 400 crore in Bajaj Financial Securities Ltd. The two companies are wholly-owned subsidiaries of Bajaj Finance.

Shares of Bajaj Finance closed 1.05% down before the earnings were announced, in line with the decline in the benchmark Nifty 50.