Bajaj Finance Ltd.’s profit surpassed analyst estimates on account of healthy loan growth and stable asset quality in the quarter ended March.
Net profit rose 61 percent to Rs 721 crore as compared to the same quarter last year, Bajaj Finance said in its filing with the stock exchanges. This was higher than Rs 606 crore estimated by analysts tracked by Bloomberg. Net interest income, or the core income of the non-banking financial company, rose 40 percent year-on-year to Rs 2,365 crore.
Asset quality improved as gross bad loans declined to 1.48 percent of total assets from 1.68 percent in the previous quarter. The ratio of net non-performing assets fell to 0.38 percent from 0.53 percent in the same period. Provisions against bad loans increased marginally to Rs 274 crore on a sequential basis. The company continues to provide for loan losses in excess of the central bank requirements, Bajaj Finance said in the press release accompanying the earnings filing.
The non-banking finance company’s loan book grew 52 percent to Rs 1.5 crore on a yearly basis. Assets under management rose 34 percent to Rs 80,444 crore, year-on-year.
Segment-Wise AUM Growth
- Consumer lending went up by 44 percent year-on-year.
- Small and medium enterprises lending increased 19 percent.
- Commercial lending grew by 57 percent.
- Rural lending rose 100 percent.
- Provision coverage ratio at 75 percent.
- Capital adequacy ratio at 24.7 percent.
- Bajaj Finance Board recommended a dividend of Rs 4 per equity share, with a face value of Rs 2 apiece.