Quarter 1 Result: Bajaj Finance reports 10% YOY increase in PAT, while NII grow to 25% to YOY
The non-banking financial company (NBFC), Bajaj Finance, reported a 10% year-on-year (YoY) increase in its consolidated profit after tax (PAT) to Rs 2,138 crore for the quarter ended June 2024, a little bit different from the street estimation.
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Non-banking financial company Bajaj Finance posted its financial results for the quarter ending on June 20, 2024, on July 23. According to their report, there was a 10% year-on-year (YoY) increase in its consolidated profit after tax (PAT) to Rs 2,138 crore for the quarter ended June 2024, with total income rising 35% YoY to Rs 31,480 crore.
While the profit after tax was slightly below market expectations, according to street estimates.
Loan And EMI Cards
The loan losses and provisions for the April–June 2024 period increased to Rs 1,685 crore against Rs 995 crore in the corresponding periods of the previous year.
The number of new loans booked during the quarter grew by 10 percent to 10.97 million as against 9.94 million in Q1 FY24. The company resumed sanction and disbursal of loans under ‘eCOM’ and ‘lnsta EMI Card’ and issuance of EMI cards after the RBI removed the restrictions on these businesses on May 2, 2024, added its filing with the exchanges.
Net Interest Income
Meanwhile, net interest income (NII) grew over 25 percent YoY for the reporting quarter to ₹8,365 crore from ₹6,717 crore in the same quarter of last year.
Pre-provisioning operating profit for the first quarter surged 25 percent year-on-year to ₹6,947 crore, up from ₹5,543 crore in the same quarter last year.
Assets Under Management
Bajaj Finance’s assets under management (AUM) crossed a milestone of Rs 2 lakh crore in the quarter and stood at Rs 2.04 lakh crore as of June 30, growing by 28%. The company’s loan losses and provisions came in at Rs 755 crore as against Rs 1.750 crore in the year-ago quarter. The company holds a management and macro-economic overlay of Rs 1,000 crore, Bajaj Finance said. Gross non-performing assets (NPA) and net NPA stood at 1.25% and 0.51%, respectively, as against 2.96% and 1.46% for the same period last year. The company said it has a provisioning coverage ratio of 60% on stage 3 assets and 130 basis points on stage 1 and 2 assets.