Bajaj Finance trims exposure to ‘imprudent borrowers’ in rural, urban areas

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₹50,000 and in ₹800,000-plus," said Jain. The total assets under management (AUM) of the segment at an industry level, Jain said, grew from ₹7.5 trillion in FY20 to ₹13.5 trillion in FY23. “What it principally says is that at an industry level, 93.73% of the total balances of the ₹7.5 trillion used to be current (being regularly repaid) in FY20.

That number in FY22 was 91.75% and in FY23 was 92.21% at the industry level," he said. Comparing these industry numbers to Bajaj Finance portfolio showed that in FY20 98.2% of its personal loans were current; as of FY22 it was at 97.12% and in FY23 it was at 98%. “Those who have more of these less-than- ₹50,000 loans (it) does not mean they are leveraged but are more imprudent," he said, adding that Bajaj Finance is looking at this data very closely on a month-on-month basis and taking decisions to ensure it continues to protect the credit risk and portfolio risk in the company.

Bajaj Finance on Tuesday reported a consolidated net profit of ₹3,551 crore, up 28% from the same period last year. Its AUM grew 33% year-on-year (y-o-y) to ₹2.9 trillion and interest income showed a growth of 38% to ₹11,734 crore. In Q2, the company said it added 3.58 million new customers, taking the total customer base to 76.56 million as of 30 September.

“I would say it was a good quarter," said Jain. The lender's gross and net non-performing asset (NPA) ratios were at 0.91% and 0.31%, respectively, as of 30 September, as against 1.17% and 0.44% as of 30 September 2022. Bajaj Finance shares closed at ₹8,091.35 apiece on Tuesday on the BSE, up 0.73% from the previous close."Exciting news! Mint is now on WhatsApp Channels