Bajaj Finance Q3 results: Bajaj Finance Q3 results: Net profit jumps 84% to Rs 1934 cr; asset quality improves

The company said its interest income rose 27.38 per cent year-on-year (YoY) to Rs 6335 crore from Rs 4973 crore in the same quarter a year ago. Interest income reversal for the quarter was Rs 241 crore as compared to Rs 450 crore in Q3FY21.

Bajaj Finance said consolidated profit after tax rose 85.42 per cent to Rs 2,125 crore from Rs 1,146 crore. Consolidated assets under management grew to Rs 1,81,250 crore from Rs 1,43,550 crore.

Loan losses and provisions for Q3 Rs 1,051 crore as against Rs 1,352 crore. Bajaj Finance said during the quarter, the company has done accelerated write-offs of Rs 163 crore of principal outstanding on account of Covid-19 related stress. The company holds management and macro-economic overlay of Rs 1,083 crore as of 31 December 2021, it said.

Asset quality also improved sequentially. Gross NPA and net NPA as of December-end stood at 1.73 per cent and 0.78 per cent, respectively, as against 2.45 per cent and 1.10 per cent as of September-end. The company has a provisioning coverage ratio of 56 per cent on Stage 3 assets and 156 bps on Stage 1 and 2 assets.

“During the quarter, the Company has changed its NPA classification criteria from number of EMI outstanding to Days Past Due approach in line with the RBI circular…This change did not have any negative impact on the Company’s NPA,” Bajaj Finance said.

New loans booked during Q3 FY22 were 7.44 million as against 6.04 million in Q3 FY21. Customer franchise stood at 55.36 million as compared to 46.31 million as of the year-ago quarter, a growth of 20 per cent. The company’s customer franchise increased by 2.56 million in Q3 FY22 as compared to 2.19 million in Q3 FY2.

The company said net Interest Income (NII) for Q3 FY22 increased by 40 per cent to Rs 6,000 crore as against Rs 4,296 crore in Q3 FY21. Total operating expenses to net interest income for Q3FY22 was 34.7 per cent as against 32.3 per cent in Q3FY21.