Bajaj Finance Q3 net up 85.5% yoy at Rs2,125cr on 40% increase in net interest income (NII)

18 Jan 2022 , 06:04 PM

Bajaj Finance reported 28.23% yoy growth in total revenues for the Dec-21 quarter on consolidated basis at Rs8,535cr. On a sequential basis, the revenues were up by 10.40%. During the December 2021 quarter,

Bajaj Finance saw the highest quarterly core AUM growth by Rs14,700cr. New loans in the third quarter were to the tune of 7.44 million compared to 6.04 million in the corresponding third quarter of the previous year.

Customer franchise has increased from 46.31 million last year to 55.36 million this year. Overall AUM of Bajaj Finance grew by 26% yoy at Rs181,250cr.

For the Dec-21 quarter, the operating profits were sharply up by 84.5% on a yoy basis. The operating profits were also higher by 43% on sequential basis.  

The net interest income (NII) or the spread earnings were up by 405 at Rs.6,000 crore in the Dec-21 quarter. The operating expense ratio also increased from 32.3% to 34.7%, but was not large enough to dent the net income spreads.

Loan loss provisions in the quarter were lower on a yoy basis by 22.2% at Rs.1,051cr. Operating margins increased sharply from 23.35% in Dec-20 quarter to 33.60% in the Dec-21 quarter. Operating margins are also higher on a sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was up 85.46% yoy at Rs2,125cr as operating profit growth got transmitted to the bottom line. Gross NPAs at the end of Dec-21 stood at 1.73%, down 72 bps on a yoy basis. Even the net NPAs at 0.78% were 32 bps lower on yoy basis.

The provision coverage (PCR) stands at 56% on stage-3 assets.  PAT margins improved from 17.22% in the Dec-20 quarter to 24.90% in the Dec-21 quarter. Net profit margins were also higher sequentially.

Financial highlights for Dec-21 compared yoy and sequentially

	Bajaj Finance
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 8,535.06	₹ 6,656.13	28.23%	₹ 7,731.36	10.40%
Operating Profit (Rs cr)	₹ 2,867.98	₹ 1,554.51	84.49%	₹ 2,004.45	43.08%
Net Profit (Rs cr)	₹ 2,125.29	₹ 1,145.98	85.46%	₹ 1,480.99	43.50%
Diluted EPS (Rs)	₹ 35.02	₹ 18.94		₹ 24.58
OPM	33.60%	23.35%		25.93%
Net Margins	24.90%	17.22%		19.16%