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Business News/ Companies / Company Results/  Bajaj Finance Q1 results: Net profit rises 32% YoY to 3,437 crore; asset quality improves
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Bajaj Finance Q1 results: Net profit rises 32% YoY to ₹3,437 crore; asset quality improves

Bajaj Finance’s assets under management (AUM) grew by 32% to ₹270,097 crore as of June 30, 2023, from ₹204,018 crore as of June 30, 2022.

Bajaj Finance recorded its highest ever quarterly increase in its AUM of ₹22,718 crore in Q1FY24. Premium
Bajaj Finance recorded its highest ever quarterly increase in its AUM of 22,718 crore in Q1FY24.

Bajaj Finance Ltd on Wednesday reported a consolidated net profit of 3,437 crore in the first quarter of FY24, registering a growth of 32% from 2,596.3 crore in the corresponding quarter of last year.

Net interest income (NII) of the non-banking finance company (NBFC), on a consolidated basis, in Q1FY24 increased by 26% to 8,398 crore from 6,640 crore, YoY.

Bajaj Finance’s assets under management (AUM) grew by 32% to 270,097 crore as of June 30, 2023, from 204,018 crore as of June 30, 2022. 

The company recorded its highest ever quarterly increase in its AUM of 22,718 crore in Q1FY24. AUM mix remained stable during the quarter under review.

Number of new loans booked during the quarter grew by 34% to 9.94 million as against 7.42 million, YoY, highest ever new loans in a quarter, Bajaj Finance said in a release.

In Q1, cost of funds was 7.61%, an increase of 22 bps over Q4 FY23. 

“Given strong ALM management and diversified balance sheet profile, net impact on NII sequentially was 11 bps. We expect gradual moderation in NII to continue through FY24," the company said.

On the asset quality front, the gross non-performing assets (NPA) ratio of the company in the April-June quarter declined to 0.87% from 0.94% in the previous quarter, and from 1.25% in a year ago period.

The net NPA ratio also improved to 0.31% in Q1FY24 from 0.34% sequentially and from 0.51% YoY.

Also Read: PNB Q1 Results: Net profit jumps 307% to 1,255 crore; NII grows 26% YoY to 9,504 crore

Bajaj Finance's long-term guidance for gross NPA was at 1.2-1.4% from 1.4-1.7% earlier. Its long-term guidance for net NPA stood at 0.4-0.5% from 0.4-0.7% earlier.

The company's long-term guidance for Return on Assets (RoA) was at 4.6-4.8% from earlier long-term guidance of 4-4.5%.

It gave Return on Equity (RoE) long-term guidance of 21-23% as compared to 19-21% earlier.

The shadow lender’s customer franchise stood at 72.98 million as of June 30, 2023, as compared to 60.30 million, YoY, a growth of 21%. The company recorded its highest ever quarterly increase in its customer franchise of 3.84 million in Q1FY24.

Deposits book grew by 46% YoY and stood at 49,944 crore in the June quarter. In Q1, net deposit growth was 5,278 crore. Deposits contributed to 21% of consolidated borrowings as of June 30, 2023, the company added.

The company has a provisioning coverage ratio of 65% on stage 3 assets as of June 2023, it said.

Capital adequacy ratio (including Tier-II capital) as Q1FY24 was at 24.61%. The Tier-I capital was 23.01%.

Bajaj Finance share price dropped sharply after the announcement of Q1 results.

At 3 pm, Bajaj Finance share price were trading 2.27% lower at 7,432.00 apiece on the BSE.

Read all Q1 Results here

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Published: 26 Jul 2023, 03:03 PM IST
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