Q1 results: Bajaj Finance’s profit up by 4%, NII increases 8% YoY

Non-performing assets(NPA) continued to remain a worry for the non-banking finance company with net NPA recorded at 1.46% as against 0.74% in the year-ago quarter

Financial services firm Bajaj Finance on Tuesday recorded a consolidated net profit of  Rs 1,002.4 crore for the first quarter of FY22, a 4 percent increase from the corresponding quarter in the previous year when net profit stood at Rs 962.3 crore. The company’s net interest income surged by 8% year-over-year (YoY) reaching Rs 4,489 crore during Q1FY22 from Rs 4,152 crore recorded the previous year.

Non-performing assets (NPA) continued to remain a worry for the non-banking finance company with net NPA recorded at 1.46% as against 0.74% in the year-ago quarter. Similarly, gross NPA increased from 1.79% in Q1 FY21 to 2.96% during Q1 FY22. In wake of the COVID-19 situation during the June quarter, Bajaj Finance wrote off principal outstanding worth Rs 113 crore. Loan losses and provisions created stood at Rs 1,750 crore, rising from 1,686 crores during the corresponding quarter in the previous year.

The company’s assets under management (AUM) witnessed a 15 per cent jump, reaching Rs 1,59,057 crore as compared to Rs 138,055 crore in the June 2020 quarter. With the inclusion of tier-II capital, the capital adequacy ratio(CAR) for Bajaj Finance came out at 22.07 percent for the June 20221 quarter.

Meanwhile, new loan bookings for the quarter stood at 4.63 million, more than doubling from 1.75 million in the year-ago quarter.

The share price of Bajaj Finance fell marginally on Tuesday, closing at Rs 5,965.15 after falling by Rs 50.25 or

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