Bajaj Finance Q2 profit jumps 63% to Rs 1,506 crore, share hits 52-week high

Bajaj Finance, a subsidiary of Bajaj Finserv, on Tuesday reported a 63.11 per cent year-on-year (y-o-y) growth in consolidated net profit at Rs 1,506.29 crore for the second quarter ended September 30, 2019, which propelled its shares to new high.

"The non-banking financial company (NBFC) had posted a consolidated net profit of Rs 923.47crore in the same quarter last year," Bajaj Finance said in a filing to the Bombay Stock Exchange.

Consolidated total income of the Bajaj group firm jumped 48 per cent to Rs 6,322 crore during Q2FY20, as against Rs 4,273 crore in Q2FY19.

Bajaj Finance's net interest income for the second quarter of current fiscal grew 48 per cent to Rs 3,999 crore from Rs 2,708 crore for the quarter ended September 30, 2018.

The other income, which includes fee, stood at Rs 860 crore, amounting to an increase of 80 per cent over Rs 478 crore in the corresponding quarter last fiscal.

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As of September 30, 2019, assets under management (AUM) grew by 38 per cent to Rs 135,533 crore from Rs 98,013 crore in the same quarter last year. Customer franchise increased by 29 per cent to 3.87 crore from 3 crore as of September 30, 2018.

Bajaj Finance's asset quality improved during the September quarter, with gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - falling marginally by 1 basis point to 1.61 per cent on sequential basis. Net NPA too declined by 1 bps to 0.65 per cent during September quarter as compared to June quarter.

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"Adjusted for IL&FS exposure, GNPA and NNPA stood at 1.44% and 0.52% as of 30 September 2019," the company said.

During the quarter, the company entered into facility agreement with various banks to avail external commercial borrowing (ECBs) loans upto $575 million in one or more tranches. First tranche of $276 million (equivalent to Rs 1,959 crore) was drawn on 17 October 2019.

Boosted by strong Q2 numbers, shares of Bajaj Finance gained as much as 1.96 per cent to touch a 52-week high of Rs 4,219.50 on the BSE.

Edited by Chitranjan Kumar