On October 17, Bajaj Finance reported a consolidated net profit of Rs 3,551 crore for the July-September quarter, marking a 28% increase from the previous year but falling short of analysts’ expectations of a 30% YoY increase to Rs 3,626 crore. The profit rise was driven by enhanced net interest income, increased loan bookings, and improved asset quality. During the quarter, they recorded a 26% increase in loan bookings to 8.53 million, and their consolidated net interest income grew 26% YoY to Rs 8,845 crore.
However, interest expenses rose by 53% to Rs 4,537 crore, and net interest margins compressed by 14 basis points due to higher funding costs. The company’s asset quality improved, with gross non-performing assets at 0.91% and net NPAs at 0.31%, down from 1.17% and 0.44% in the previous year. Despite this, loan losses and provisions increased to Rs 1,077 crore, including a management and macro-economic overlay of Rs 740 crore.
Bajaj Finance’s deposits on a consolidated basis grew by 39% to Rs 54,800 crore, contributing to 21% of consolidated borrowings. Their assets under management (AUM) also saw a 33% increase, reaching Rs 2.9 lakh crore in Q2, with notable growth in two and three-wheeler finance, commercial lending, and urban sales finance. On a standalone basis, Bajaj Finance’s AUM grew by 35% to Rs 2.15 lakh crore.
As of Tuesday, Bajaj Finance’s shares closed at Rs 8,094.50, marking a 0.77% increase on the NSE.