Bajaj Finance posted an 85% jump in consolidated net profit to Rs 2,125.2 crore on a 28% increase in total income to Rs 8,535.06 crore in Q3 FY22 over Q3 FY21.
The consolidated results of Bajaj Finance include the results of its wholly owned subsidiaries viz. Bajaj Housing Finance (BHFL) and Bajaj Financial Securities (BFinsec).The NBFC's consolidated profit before tax rose 84% to Rs 2,868 crore in Q3 FY22 from Rs 1,555 crore posted in Q3 FY21. Net Interest Income (NII) for Q3 FY22 increased by 40% to Rs 6,000 crore as against Rs 4,296 crore in Q3 FY21. Interest income reversal for the quarter was Rs 241 crore as compared to Rs 450 crore in Q3 FY21.
The NBFC's assets under management (AUM) grew by 26% to Rs 181,250 crore as of 31 December 2021 from Rs 143,550 crore as of 31 December2020. The NBFC reported its highest ever quarterly core AUM growth off Rs 14,700 crore for the quarter ended 31 December 2021. New loans booked during Q3 FY22 were 7.44 million as against 6.04 million in Q3 FY21.
Loan losses and provisions for Q3 FY22 was Rs 1,051 crore as against Rs 1,352 crore in Q3 FY21. During the quarter, the company said it accelerated write offs of Rs 163 crore of principal outstanding on account of COVID-19 related stress. The NBFC's capital adequacy ratio (including Tier-II capital) as of 31 December 2021 was 26.96% with tier-1 capital at 24.44%.
On the asset quality front, gross NPA and net NPA as of 31 December 2021 stood at 1.73% and 0.78% respectively, as against 2.45% and 1.10% as of 31 September 2021. The Company has provisioning coverage ratio of 56% on stage 3 assets and 156 bps on stage 1 and 2 assets as of 31 December 2021.
The NBFC's board approved raising of funds, by way of debt issue/issue of non-convertible securities as a part of the proposed increase in overall borrowing limit from Rs 160,000 crore to Rs 225,000 crore, subject to approval of the shareholders.
Meanwhile, the company's board has also approved an investment in the equity share capital of Bajaj Housing Finance Limited and Bajaj Financial Securities Limited, wholly owned subsidiaries of the company up to Rs 2,500 crore and Rs 400 crore respectively.
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.
The scrip fell 1.34% to end at Rs 7747.15 on Tuesday.
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