Bajaj Finance rallied 3.35% to Rs 5,949 after the NFBC's consolidated net profit surged 39.89% to Rs 2,973 crore on 26.31% jump in total income to Rs 10,785.95 crore in Q3 FY23 over Q3 FY22.
The consolidated results of Bajaj Finance include the results of its wholly owned subsidiaries, Bajaj Housing Finance (BHFL), Bajaj Financial Securities (BFinsec) and its associate company, Snapwork Technologies.
The company said it reported highest ever consolidated profit after tax in Q3 FY23. Profit before tax climbed 39.88% year on year to Rs 4,011.68 crore recorded in the quarter ended 31 December 2022.
New loans booked during Q3 FY23 grew 5% to 7.84 million as against 7.44 million reported in the same period a year ago.
The company's net interest income (NII) rose 24% to Rs 7,435 crore from Rs 6,005 crore posted in the corresponding quarter previous year. Total operating expenses to net interest income was consistent at 34.7% in Q3 FY23.
Assets under management (AUM) grew by 27% to Rs 230,842 crore as of 31 December 2022 from Rs 181,250 crore as of 31 December 2021.
Customer franchise stood at 66.05 million as of 31 December 2022 as compared to 55.36 million as of 31 December 2021, recording a growth of 19%. The company said that it recorded highest ever quarterly increase in its customer franchise of 3.14 million in Q3 FY23.
Loan losses and provisions slipped 20% to Rs 841 in Q3 FY23 as against Rs 1,051 crore reported in Q3 FY22. The company holds a management and macro-economic overlay of Rs 1,000 crore as of 31 December 2022.
On the asset quality front, gross NPA and net NPA as of 31 December 2022 stood at 1.14% and 0.41% respectively, as against 1.73% and 0.78% as of 31 December 2021. The company has provisioning coverage ratio of 64% on stage 3 assets and 116 bps on stage 1 and 2 assets as of 31 December 2022.
Capital adequacy ratio (including tier-II capital) as of 31 December 2022 was 25.14%. The tier-I capital was 23.28%.
Deposits book stood at Rs 42,984 crore as of 31 December 2022. In Q3, the net deposit growth was Rs 3,562 crore. Deposits contributed 21% of consolidated borrowings as of 31 December 2022.
Overall stage 2 assets stood at Rs 2,860 crore as of 31 December 2022 as against Rs 3,155 crore as of 30 September 2022. Overall stage 3 assets was at Rs 2,610 crore as of 31 December 2022 as against Rs 2,530 crore as of 30 September 2022.
The NBFC's annualized return on average assets (ROA) and return on average equity (ROE) stood at 5.4% and 24%, respectively in the quarter ended 31 December 2022.
Bajaj Finance is engaged in lending and allied activities. It focuses on consumer lending, small and medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits and value-added services.
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