Bajaj Finance net profit jumps 32% to Rs 3,437 cr on record loan sales

Mumbai: The most valuable non-banking lender Bajaj Finance on Wednesday reported a 32 per cent on-year growth in consolidated net profit to Rs 3,437 crore for the June quarter on record disbursals that sniffed at almost 10 million new borrowers.

The Pune-headquartered company, which has the highest market capitalisation of more than Rs 4.5 lakh crore among non-banking lenders, said the quarter under review saw them adding 38.4 lakh customers, taking the overall customer base to 7.29 crore, up 21 per cent from 6.03 crore a year ago.

The company had a record new loan sanctions of 99.4 lakh, which grew by 34 per cent on-year.

The company said excluding a reversal of deferred tax liability of Rs 73 crore, net income grew 30 per cent.

Its consolidated total income rose to Rs 12,500.54 crore in the April-June quarter of FY24, against Rs 9,285.86 crore in the year-ago quarter.

The key profitability gauge net interest income rose 26 per cent to Rs 8,398 crore on-year, giving it operating expenses to NII ratio of 34 as against 35.9 in the 12 trailing months.

Loan losses and provisions rose to Rs 995 crore from Rs 755 crore. The company carried a management and macroeconomic provision of Rs 840 crore. This has its provision coverage ratio at 65.

In other words, the company had gross and net bad loan ratios of 0.87 and 0.31, as against 1.25 and 0.51 respectively in the June 2022 quarter.

Its deposits stood at Rs 49,764 crore which is around 21 per cent of the consolidated borrowings and 28 per cent of the standalone borrowings. The company paid Rs 4,103 crore in interest expenses, which was 55 per cent more than the comparable period last fiscal.

Fees, commissions, and other non-interest income rose Rs 1,680 crore, taking the total income to Rs 12,501 crore, which is more than 35 per cent on-year.

This also had the company taking its assets under management to Rs 270,097 crore, a growth of 32 per cent on-year.

The company in a statement said the numbers include those of its wholly-owned subsidiaries--Bajaj Housing Finance, Bajaj Financial Securities and its associate company Snapwork Technologies.

Bajaj Finance shares closed 2.29 per cent down at Rs 7,431.05 on BSE.