Bajaj Finance Q3 Profit Jumps 52%; Shares Surge To 52-Week High

On Wednesday, Bajaj Finance Ltd reported 52 percent increase in net profit (after tax) at Rs 1,614 crore for the December-ended quarter from Rs 1,060 crore a year ago.

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Shares of Bajaj Finance Ltd surged over 4 percent to a new 52-week high of Rs 4,450, following the results.

The net interest income (NII) for the quarter was up by 42 percent to Rs 4,537 crore when compared to Rs 3,206 a year ago.

The non-banking finance company's loan losses and provisions in the quarter under review rose by 84 percent to Rs 831 crores.

"During the quarter, the Company has made an accelerated provision of Rs 85 crore in one of its loan against securities account. On the residual outstanding of this account, based on the progress in Q4 we will take a final call on provision. Adjusted for this, loan losses and provisions grew by 65% YoY in Q3 FY20 to Rs 746 crore," the company said in its investor presentation

Gross NPA (non-performing assets) and Net NPA stood at 1.61 percent and 0.70 percent as of 31 December 2019. Sequentially, GNPA remains flat and NNPA has moved up by 5 basis points.

The NBFC's AUM (assets under management) grew by 35 percent to Rs 1,45,092 crore from December 2018. New loans booked were up by 13 percent to 7.67 million, as per its stock exchange filing.

Business segment wise, the year-on-year AUM growth during the quarter for consumer B2B sales finance was 7 percent, consumer B2C 43 percent, rural B2B 21 percent, rural B2C 58 percent, SME 32 percent, mortgages 44 percent, auto finance 51 percent, commercial lending 15 percent and securities lending 5 percent.

Annualized Return on Assets for the quarter was 4.78 percent and Return on Equity was 23.78 percent.

New customer acquisition momentum for the December-ended quarter remained strong at 2.46 million. As of 31 December, Bajaj Finance Ltd's total customer franchise stood at 40.38 million, a growth of 24 percent year-on-year.

Its existing customers contributed to 68 percent of new loans booked during the quarter.

Among subsidiaries, Bajaj Housing Finance Ltd delivered a profit after tax of Rs 131 crore.

Bajaj Finance said that its Board of Directors has approved investment in the equity of BHFL amounting to Rs 1,500 crore.
Another subsidiary, Bajaj Financial Securities Limited, launched a digital platform for its retail and HNI (High Networth Individuals) customers and opened branches in 4 cities in India for servicing HNI customers.