Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Bajaj Finance July-Sept net up 66%, focus on asset quality
BackBack

Bajaj Finance July-Sept net up 66%, focus on asset quality

Bajaj Finance July-Sept net up 66%, focus on asset quality

A file photoPremium

A file photo

New Delhi: Financial services provider Bajaj Finance expects its profit to climb 50% in 2011/12, lower than a two-thirds rise in the second quarter, as higher interest rates crimp demand for loans.

“Our focus is entirely on quality of portfolio rather than growth," chief executive officer Rajiv Jain told Reuters by telephone on Wednesday.

A file photo

“In the second half of the year, given the high interest environment, you will see small business and commercial slow further," Jain said, adding that the festive season would ensure higher consumer spending and thus a ‘strong´ third quarter but the fourth quarter remains ‘uncertain´.

Jain however said that the overall discretionary spending momentum in the economy has continued to remain strong.

Earlier in the day, it reported a 66% jump in July-Sept profit to 87.4 crore on higher income from operation and lower provisioning for bad loans. Total income rose 53% to 492crore.

Loan losses and provisions for the quarter fell 28% to 44.0 crore from a year ago and net non-performing asset for the quarter fell to 0.33% from 1.4% a year ago.

The non-banking finance company, which lends to consumer durables, two-wheelers, mortgages and construction equipment segments, expect its net NPA to remain between 0.35-0.5% by the year-end.

India’s central bank has raised rates a dozen times since March 2010 to tame a stubbornly high inflation and is expected to raise it one more time later this month.

Bajaj Finance, valued by the market at about $500 million, has lost 4% this year, while the benchmark BSE index has slmuped about 18%.

On Wednesday, shares in Bajaj Finance ended up 0.53% at 677.90 in a Mumbai market that was up 2%.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 19 Oct 2011, 06:08 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie