Bajaj Finance Q2 profit soars 37%, despite GST impact
In spite of some impact arising from GST roll-out disruptions, Bajaj Finance reported a 37% jump in net profit at Rs557 crore for the quarter to September
Mumbai: In spite of some impact arising from goods and services tax (GST) roll-out disruptions, leading non-banking finance player Bajaj Finance on Monday reported a 37% jump in net profit at Rs557 crore for the quarter to September, as overall advances grew at a healthy pace.
“Overall it was a good quarter for us. We have seen healthy growth in all our segments despite the GST disruptions which saw some impact on our SME book,” managing director Rajeev Jain said. The SME book constitutes around 34% of the Pune-based NBFC’s assets. The asset under management grew 38% to Rs72,139 crore from Rs52,332 crore last year.
Gross NPA and net NPA stood at 1.68% and 0.51%, respectively, while the provisioning coverage ratio stood at 70%. The numbers are not comparable as the current quarter the company has reported NPAs from a 90-days past due (DPD) format, while earlier NBFCs were reporting 120 DPD. Reflecting the higher advances, growth loan losses and provisions increased to Rs228 crore as against Rs165 crore in the year-ago period.
Consumer lending grew 42%while small and medium enterprises portfolio increased by 18% in the quarter. “Our SME portfolio has seen some impact due to GST roll-out. We see the pain continuing for at least two more quarters,” Jain said. The company has picked up 11% equity in digital payments player One Mobikwik Systems during the quarter for Rs225 crore.
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