Bajaj Auto Finance, the captive non-banking finance company (NBFC) of Bajaj Auto, saw its net profit jump five-fold to Rs 15.21 crore for the quarter ended June 2009 as against Rs 3.01 crore in the corresponding quarter last year.
Total income increased by 48 per cent to Rs 189.85 crore while net interest income rose 75 per cent to Rs 148.22 crore on a year-on-year basis. Deployments increased by 65 per cent to Rs 1,045.89 crore.
Rajeev Jain, chief executive officer, said, “We have seen an overall demand pick-up, especially in durable financing and loans against property businesses.”
However, provisions for bad loans increased to Rs 53.4 crore from 29.76 crore in the corresponding quarter of the previous year.
The company finances 18-20 per cent of all two-wheelers sold by Bajaj Auto. Jain said the company remained cautiously optimistic about the future. Business in the coming quarters would depend on the monsoon since a large part of the firm’s business comes from non-metro cities.