Bajaj Finance Q2FY23 PAT up 88% at Rs2,781 on higher NII and lower NPAs

22 Oct 2022 , 06:22 PM

Bajaj Finance Ltd reported 28.89% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs9,968.40cr. Revenue growth was 7.39% in sequential terms.

The new loans booked grew by 7% to 6.76 million even as the net interest income (NII) grew by 31% in the quarter to Rs7,001 crore.

For the quarter, IPO financing was down 38%, which is not surprising. However, the big growth segments were LAS at 67%, commercial lending at 36%, SME lending at 32% and rural B2B and B2C lending at 34%.

Its deposit base registered a growth of 37% on a yoy basis while the assets under management (AUM) was up 31% at Rs2.18 trillion. Capital adequacy showed comfort at 25.13%.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 87.76% at Rs2,781cr on the back of a sharp spike in the net interest income (NII) and a fall in the gross NPA levels.

Gross NPAs fell yoy from 2.45% to 1.17% while the net NPAs fell from 1.10% to 0.44%. Loan loss provisions for the quarter nearly halved to Rs734 crore while the ratio of total operating expenses to NII fell from 38.11% to 35.9% yoy.

PAT margins were sharply higher at 27.89% in the Sep-22 quarter compared to 19.15% in the Sep-21 quarter and compared to a flat 27.97% in June 2022 quarter. Most of the doubtful assets in the books of Bajaj Finance are already provided for.

Financial highlights for Sep-22 compared yoy and sequentially

	Bajaj Finance
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 9,968.40	₹ 7,733.84	28.89%	₹ 9,282.76	7.39%
Operating Profit (Rs cr)	₹ 3,752.29	₹ 2,004.45	87.20%	₹ 3,502.76	7.12%
Net Profit (Rs cr)	₹ 2,780.65	₹ 1,480.99	87.76%	₹ 2,596.25	7.10%
Diluted EPS (Rs)	₹ 45.81	₹ 24.42		₹ 42.78
OPM	37.64%	25.92%		37.73%
Net Margins	27.89%	19.15%		27.97%