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Bajaj Finance Q1 results: Net profit rises 159% to ₹2,596 cr, new loans booked soars 60%

The NBFC's net interest income (NII) climbed by 48% to ₹6,638 crore in the quarter under review from ₹4,489 crore in Q1 of last year. During Q1FY23, new loans booked jumped by 60% to 7.42 million as against 4.63 million in Q1FY22.

During Q1FY23, new loans booked jumped by 60% to 7.42 million as against 4.63 million in Q1FY22. (Reuters)Premium
During Q1FY23, new loans booked jumped by 60% to 7.42 million as against 4.63 million in Q1FY22. (Reuters)

NBFC-giant, Bajaj Finance witnessed a strong June 2022 (Q1FY23) quarter with net profit rising by a whopping 159% to 2,596 crore compared to 1,002 crore in the same quarter last year. Net interest income (NII) climbed by 48% to 6,638 crore in the quarter under review from 4,489 crore in Q1 of last year. During Q1FY23, new loans booked jumped by 60% to 7.42 million as against 4.63 million in Q1FY22.

As of June 30, 2022, Bajaj Finance's asset under management (AUM) increased by 28% to 204,018 crore compared to 159,057 crore as of June 30, 2021. Core AUM growth was at 11,931 crore during Q1FY23.

Meanwhile, the company's total operating expenses to net interest income for Q1FY23 was at 35.9% as against 30.6% in Q1FY22.

Further, loan losses and provisions for Q1FY23 were at 755 crore as against 1,750 crore in the same quarter last year. The company holds management and macro-economic overlay of 1,000 crore as of 30 June 2022.

In terms of asset quality, Bajaj Finance's gross NPA and net NPA stood at 1.25% and 0.51% respectively in Q1FY23, compared to 2.96% and 1.46% in the same period a year ago. The NBFC's provisioning coverage ratio is at 60% on stage 3 assets and 130 basis points on stage 1 and 2 assets as of June 30, 2022.

Moreover, the capital adequacy ratio (including Tier-II capital) in Q1FY23 was at 26.16%. The Tier-I capital was 23.84% in the quarter.

On a standalone basis, Bajaj Finance posted a net profit of 2,356 crore in Q1FY23 rising by 179% from 843 crore in Q1FY22. Net interest income for Q1 FY23 increased by 48% to 6,140 crore from 4,153 crore in Q1FY22.

Subsidiary Bajaj Housing Finance registered a 96% growth in net profit to 316 crore in Q1FY23 from 161 crore in Q1FY22. The HFC's net interest income stood at 594 crore up 77% yoy. It's AUM grew by 40% to 57,425 crore as of June 30, 2022, from 40,941 crore as of June 30, 2021.

As for Bajaj Financial Securities, the subsidiary clocked a profit of 1 crore against a loss of 3 crore in Q1FY22. Total Income for Q1FY23 was at 38 crore as against 15 crore for Q1FY22. Customers acquired during Q1FY23 were approximately 36,500. BFinsec's customer franchise as of June 30, 2022, was over 367,500. Margin trade financing (MTF) book stood at 741 crore in Q1FY23 as against 200 crore in Q1FY22.

On BSE, Bajaj Finance shares closed at 6405 apiece up by 145.15 or 2.32%. Its market cap is around 3,87,459.57 crore.

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Updated: 27 Jul 2022, 03:34 PM IST
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