Bajaj Finance, India's leading non-banking finance company, on July 20 reported a 4.2 percent year-on-year growth in consolidated profit at Rs 1,002 crore for the quarter ended June 2021, with asset quality under pressure and elevated provisions. The consolidated profit in the year-ago quarter was at Rs 962 crore.
The company's consolidated net interest income grew by 8 percent to Rs 4,489 crore compared to the corresponding quarter of the last fiscal, the company said in its BSE filing. The interest income reversal for the quarter was Rs 451 crore as compared to Rs 306 crore in the year-ago period.
The consolidated results of Bajaj Finance include those results of its wholly owned subsidiaries Bajaj Housing Finance (BHFL) and Bajaj Financial Securities (BFinsec).
Loan losses and provisions for Q1FY22 were Rs 1,750 crore, higher by 3.8 percent over Rs 1,686 crore provisions recorded in Q1FY21.
"During the quarter, the company has done accelerated writeoffs of around Rs 113 crore of principal outstanding on account of Covid-19-related stress. The company holds a management overlay and macro provision of Rs 483 crore as of June 2021," said Bajaj Finance.
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Gross non-performing assets (GNPAs) and net non-performing assets as of June 2021 stood at 2.96 percent and 1.46 percent, respectively, increasing from 1.4 percent and 0.50 percent in June 2020. The company said it had provisioning coverage ratio of 51 percent on stage 3 assets and 174 bps on stage 1 and 2 assets as of June 2021.
Bajaj Finance said new loans booked during Q1FY22 were 4.63 million as against 1.75 million in Q1FY21.
The company said customer franchise crossed a milestone of 50 million and stood at 50.45 million as of June 2021 compared to 42.95 million in the year-ago quarter, a growth of 17 percent.
It acquired 1.88 million new customers in Q1 FY22 compared to 0.53 million in Q1FY21.
"Assets under management (AUM) grew by 15 percent to Rs 1,59,057 crore (including IPO financing receivables of Rs 2,942 crore) as of June 2021 from Rs 1,38,055 crore as of June 2020. Core AUM growth in Q1 FY22 was approximately Rs 4,100 crore," said the company.