Bajaj Finance, a prominent non-banking financial company (NBFC), shared its financial results for the second quarter of the year 2024. They out stood themselves and made a profit of ₹3,550.80 crore. This is a big increase of 27.7% compared to the same time last year when they made ₹2,780.65 crore.
A major reason behind this strong performance is the significant increase in net interest income (NII), which went up by an impressive 26% considering all the company’s operations together. In the second quarter of the financial year 2024, the NII reached ₹8,845 crore, compared to ₹7,002 crore during the same time last year. This growth shows indicates that the company is managing its assets and debts that earn interest, leading to better overall profits.
Furthermore, Bajaj Finance reported a commendable expansion in its Assets Under Management (AUM), reaching ₹290,264 crore for the quarter ended September. This represents a remarkable 33% growth from the AUM of ₹218,366 crore reported as of September 30, 2022. The surge in AUM is a testament to the company’s strategic initiatives and effective deployment of resources in a dynamic market environment.
Another significant milestone for Bajaj Finance is the achievement of a consolidated deposit figure reaching a new high of ₹50,000 crore in Q2 FY24. This substantial deposit growth reflects the confidence and trust reposed by depositors in the company’s financial stability and management.
When assessing the asset quality, Bajaj Finance continues to exhibit resilience and prudence. As of September 30, 2023, the gross non-performing assets (NPA) and net NPA were reported at 0.91% and 0.31%, respectively. This reflects a disciplined approach to risk management, ensuring a healthy loan portfolio.
In terms of capital adequacy, a critical indicator of financial strength, Bajaj Finance continues to maintain a robust position. The capital adequacy ratio (including Tier-II capital) as of September 30, 2023, was reported at 23.19%. The Tier-I capital, a core measure of financial strength, stood at 21.88%, reinforcing the company’s sound capital structure.
