Bajaj Finance Q2 Consolidated Net Up Rs 3,551 Cr

Bajaj Finance on Tuesday reported a consolidated net profit of Rs 3,551 crore in Q2 FY24, as its assets under management surged to Rs 2,90,264 crore by the end of September 2023, the company said. Furthermore, the consolidated deposits surpassed Rs 50,000 crore in Q2 FY24, reaching nearly Rs 54,821 crore by September.

Additionally, the Net Interest Income for Q2 FY24 rose by 26 per cent to approximately Rs 8,845 crore, compared to Rs 7,002 crore in Q2 FY23.

The Gross Non-Performing Assets (NPA) and Net NPA as of 30 September 2023 were at 0.91 per cent and 0.31 per cent respectively, demonstrating an improvement from the previous year. The Company maintained a provisioning coverage ratio of 66 per cent on stage 3 assets as of 30 September 2023.

Capital adequacy ratio, including Tier-II capital, stood at 23.19 per cent, with Tier-I capital at 21.88 per cent. The Board of Directors approved the issuance of securities for up to approximately Rs 8,800 crore through Qualified Institutional Placement, subject to shareholder approval.

Moreover, the Company has engaged in a binding term sheet for the acquisition of up to 26 per cent equity stake in Pennant Technologies Private Limited, a technology product company, for an aggregate amount of Rs 267.50 crore. The transaction is slated for completion on or before 30 December 2023.

Consolidated Performance Highlights for Q2 FY24

- The number of new loans booked recorded a 26 per cent increase, totalling 8.53 million, in contrast to 6.76 million in Q2 FY23.

- The customer franchise expanded to 76.56 million, making 22 per cent growth.

- Assets under management (AUM) witnessed a surge of 33 per cent, reaching Rs 2,90,264 crore.

- Profit after tax demonstrated a 28 per cent increase, totalling Rs 3,551 crore.

- Annualised Return on Assets (ROA) stood at 5.2 per cent, while the Annualised Return on Equity (ROE) was 24.1 per cent.