Mumbai Consumer financier Bajaj Finance Ltd on Tuesday reported 85% year-on-year growth in consolidated net profit 2,125 crore for the three months to December, due to higher interest income.
Net Interest Income (NII) up 40% 6,000 crore in the December quarter of FY 2012, as against 4,296 crore in the third quarter of the last financial year. Interest income reversal for the quarter was 241 crore as compared to 450 crores in Q3 FY21. To be sure, the company said last year’s fiscals are not strictly comparable on a year-on-year (year-on-year) basis due to the dislocation due to the pandemic.
In Q3 FY22, Bajaj Finance said it has recorded the highest ever Core Asset Under Management (AUM) growth 14,700 crore in a quarter. Its AUM was up 26% as on 31st December 2021 1.81 trillion, as against 1.43 trillion as of 31 December 2020.
“(d) AUM structure remained stable. There has been no impact on business momentum so far in January. If the third wave does not cause disruption, the company expects strong fourth quarter and full-year AUM growth.”
It added that the competitive intensity in products has increased rapidly after the second Covid-19 wave and so far, it has been able to protect its margin profile across businesses. Its cost has further come down to 6.72% in Q3 of FY 2012 as compared to 6.77% in Q2 of FY 2012.
In Q3, Bajaj Finance picked up 2,722 crore NCDs over a period of three years and above, including 2,117 crores were raised over a period of 10 years and above. its liquidity was on the buffer 14,400 crores by 31st December 2021 and it is expected to be normal 11,000 crore level till March quarter of FY22.
The lender’s gross non-performing assets and net non-performing assets stood at 1.73% and 0.78%, respectively, as on December 31, as against 2.45% and 1.1% on September 3. Its provision coverage ratio was 56% on Stage 3 assets and 156 basis points (bps) on Stage 1 and 2 assets as of December 31.
“During the quarter, the company has changed its NPA classification criteria by number of Equated Monthly Installment (EMI) for outstanding days in line with RBI circular dated November 12, 2021. This change had no negative effect. NPA of the company,” it said.
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