Bajaj Finance net profit rises 32% on loan demand

economictimes.indiatimes.com:

Bajaj Finance, India's largest non-bank consumer financier, said net profit increased 32% year-on-year to ₹3,437 crore in the quarter ended June 2023 from ₹2,596 crore a year ago due to strong loan growth. Total assets under management (AUM) increased 32% to ₹2.70 lakh crore led by the highest ever quarterly increase in AUM of ₹22,718 crore during the quarter. AUM increased on the back of strong loan growth across businesses, led by two- and three-wheeler finance (48%), commercial lending and loan against securities 50% each and SME lending which increased 36%.

As a result, net interest income (NII) increased 26% to ₹8,398 crore from ₹6,640 crore a year ago. Profit was also helped by a ₹155 crore tax write back during the quarter. The number of new loans booked during the quarter increased 34% year-on-year to 9.94 million from 7.42 million a year ago.

Asset quality also improved with net NPA down to 0.31% at the end of June 2023 from 0.51% a year ago. Loan loss provisions increased to ₹995 crore from ₹755 crore a year ago. The company holds extra provisions of ₹840 crore as of June 2023.

Among the company's subsidiaries, Bajaj Housing Finance's assets under management increased 29% to ₹74,124 crore in June 2023 from ₹57,425 crore a year ago. NII for the company increased 18% to ₹702 crore from ₹594 crore a year ago. AUM for the main consumer finance business grew 33% to ₹1.99 crore in June 2023 from ₹1.49 lakh crore in June 2022.