Bajaj Finance Q1 net profit rises 4% to ₹1,002 crore; NII up 8%

Bajaj Finance's consolidated net profit for the first quarter of FY22 came at ₹1,002 crore, up 4% as compared to ₹962 crore in the same quarter last year. Its Net Interest Income (NII), the difference between interest earned and interest expended, for Q1FY22 increased by 8% to ₹4,489 crore as against ₹4,152 crore in the year ago quarter, the financial services company's quarterly results showed on Tuesday.

Its asset quality remained under pressure as the gross non performing assets (NPA) and Net NPA as of 30 June 2021 stood at 2.96% and 1.46% respectively, as against 1.79% and 0.74% quarter-on-quarter. Loan losses and provisions for the quarter was ₹1,750 crore as against ₹1,686 crore in the corresponding quarter of the previous fiscal.

During the quarter, the company has done accelerated write offs of ₹113 crore of principal outstanding on account of Covid-19 related stress.

The assets under management (AUM) grew by 15% to ₹159,057 crore as of 30 June 2021 from ₹138,055 crore as of 30 June 2020. Core AUM growth in Q1 FY22 was approximately at ₹4,100 crore.

During the quarter, its new loans booked were 4.63 million as against 1.75 million YoY. Bajaj Finance's capital adequacy ratio (including Tier-II capital) as of 30 June 2021 was 28.57% and the Tier-I capital at 25.41%.

Shares of Bajaj Finance closed over 1% lower at ₹5,938 per share on the BSE on Tuesday.