Mumbai: Bajaj Finance reported a consolidated net profit of ₹1,176.06 crore for the quarter ended March 2019, suggesting an increase of 57% from the same period last year. The consolidated results of Bajaj Finance include its wholly-owned subsidiaries – Bajaj Housing Finance and Bajaj Financial Securities.
The non-banking financial company (NBFC) posted a net interest income (NII) of ₹3,395 crore in Q4FY19, up 50% on a year-on-year (y-o-y) basis. The lender booked 5.83 million new loans during the quarter under review, up 53% from 3.8 million in the same period last year and, on an annual basis, its assets under management (AUM) grew 41% to ₹1.15 trillion in Q4FY19.
While the non-bank’s gross non-performing assets (NPAs) ratio — gross bad loans as a percentage of total loans — stood at 1.54%, its net non-performing assets were at 0.63% of its assets.
In a rating release on 5 April, Crisil said Bajaj Finance has emerged as one of the largest retail asset financing NBFCs in India. Crisil added that Bajaj Finance's asset-liability profile is comfortable. Between 31 August 2018 and 21 March 2019, the company had debt repayments of ₹12,540 crore, of which commercial paper repayments are around ₹7,695 crore. As on 21 March, 2019, it had cash and cash equivalents of ₹3,525 crore and unutilized bank lines of ₹4,202 crore.
“Bajaj Finance's liquidity profile also benefits from the high proportion of shorter-tenor assets such as consumer durables; it has significant positive gaps in its asset liability management (ALM), indicating that business inflows support repayments," said Crisil.
Of the consolidated AUM mix of the lender, consumer business accounted for 39%, rural at 8%, SME at 14%, commercial at 10% and mortgages at 29% as on 31 March. However, on a standalone basis, consumer accounted for 45% of the AUM, rural at 9%, SME at 16%, commercial at 12% and mortgage (residual) at 18% in the same period.
Meanwhile, Bajaj Finserv, the holding company for Bajaj Finance, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company reported a consolidated profit after tax (PAT) of ₹839 crore in Q4FY19, up 32% year-on-year.
S Sreenivasan, chief financial officer, Bajaj Finserv said the inflows that come from its retail business, matches against the outflows and in each of the maturity buckets Bajaj Finance has a surplus.
“The difference between us and some other NBFCs might be that our book is predominantly short-term. Our longer term housing finance book is about 30% of the total book and the rest is predominantly consumer finance and the loan churns in less than a year," said Sreenivasan.
Sreenivasan added that Bajaj Finance does not need access to as much long-term funds as an infra company would need. “Therefore we are in a good liquidity position and we have no issue of funding either in the market of in terms of our asset liability management (ALM)," he said.