Bajaj Finance today said its net profit for the quarter ended June 30, 2012 expanded 53% to Rs 139 crore from Rs 91 crore a year earlier. Higher interest and fee income combined with lower loan loss provisions aided the company's earnings growth during the three-month period.
Net interest income, or the difference between interest income and interest expense, rose 41% to Rs 439 crore as the Pune-based non-banking finance company grew its loan book and increased its assets base.
Assets under management stood at Rs 14,485 crore at the end of June, 2012 and was up 60% from a year ago. The growth was driven by increase in commercial assets, which expanded 91% year-on-year. SME and consumer assets also grew by 61% and 50%, respectively.
Bajaj Finance saw 38% rise in customer acquisition, which aided the growth in its loan portfolio. Total deployments increased by 32% to Rs 4,728 crore driven by higher disbursement of SME and consumer loans. Secured loans had 84% share in total advances.
The company improved its asset quality as net non-performing asset ratio fell to a five-year low of 0.10%. This allowed the company to cut its loan loss provisions by 6% to Rs 32 crore. Provision coverage stood at 91% at the end of June, 2012.
Bajaj Finance closed the quarter with a capital adequacy ratio of 16.8%.
The company's stocks were trading almost 13% up at Rs 977 on BSE at 1215 hours.
