Leading NBFC Bajaj Finance on Tuesday, October 26 announced its financial performance for the quarter ending September 30. During Q2FY22, the NBFC reported a rise of 53.5 percent in YoY net profits at Rs 1,481 crore as compared with Rs 964.88 crore in the same quarter last year, owing to lower provisions and improvement in asset quality.
In a regulatory filing to the BSE, Bajaj Finance stated that the company’s Net Interest Income (NII) for the July-September quarter jumped 28 percent to Rs 5,335 crore compared with Rs 4,162 crore in the same quarter last year.
Meanwhile, interest income reversal for the quarter under review was Rs 322 crore as compared to Rs 216 crore in the corresponding quarter last year. “During the quarter, the company has done accelerated write-offs of Rs 355 crore of principal outstanding on account of COVID-19 related stress and advancement of write off policy. The company holds management and macro-economic overlay of Rs 832 crore as of September 30,” Bajaj Finance disclosed in the exchange filing.
For the quarter under review, 6.33 million new loans were booked compared with 3.62 million in the year-ago quarter. Customer franchise, on the other hand, stood at 52.80 million as of September 30, up 20 percent from 44.11 million year-on-year.
Moreover, the company’s Assets Under Management (AUM) saw an increase of 22 percent YoY, standing at Rs 1,66,937 crores during Q2FY22. “Core AUM growth in Q2FY22 was approximately Rs 11,150 crore,” the company said. Bajaj Finance also reported improvement on the asset quality front, with gross non-performing assets as a percentage of gross advances falling 51 base points quarter-on-quarter to 2.45 percent, while net NPA declined 36 base points sequentially to 1.10 percent.