Bajaj Finance Q2 FY24 results: Consolidated net profit rises to Rs 3,551 cr, asset quality improves

Bajaj Finance Ltd on Tuesday reported a net profit of Rs 3,551 crore for the Q2 FY24, up 28 per cent from Rs 2,781 crore in the same quarter of the previous year. 

The net interest income (NII) of the non-banking finance company (NBFC), on a consolidated basis, in Q1 FY24 increased by 26 per cent to Rs 8,398 crore from Rs 6,640 crore in the year-ago period.

Its total revenue from operations grew 34 per cent YoY to Rs 13,378.26 crore. 

Bajaj Finance's asset quality improved. Its gross non-performing assets (NPA) stood at 0.91 per cent and net NPA at 0.31  per cent as against 1.17 per cent and 0.44 per cent in the year-ago period.

The company’s assets under management grew 33 per cent to Rs 2.9 lakh crore in Q2 from Rs 2.1 lakh crore in the year-ago period. In Q2 FY24, AUM rose by Rs 20,167 crore, as per the NBFC's filing.

The NBFC said the number of loans booked during the quarter rose 26 per cent to 8.53 million from 6.76 million in the corresponding period of the previous year. Deposits surged by 39 per cent to Rs 54,800 crore from Rs 39,422 crore in the year-ago period.

Loan losses and provisions for the quarter was Rs 1,059 crore, compared to Rs 705 crore a year ago.

Capital adequacy ratio, including Tier-II capital, was 23.19 per cent as of September 30. Tier-I capital was 21.88 per cent.

The company had a provisioning coverage ratio of 66 per cent on stage-3 assets as of September 30.

The consolidated results of Bajaj Finance include that of its wholly owned subsidiaries – Bajaj Housing Finance, Bajaj Financial Securities, and Snapwork Technologies Pvt Ltd.

Bajaj Finance had earlier reported 7.4 per cent sequential loan growth in the September quarter against 6-9 per cent QoQ in the last four quarters. It reported a 33 per cent YoY growth in asset under management.

 

Shares of Bajaj Finance closed at Rs 8,091.35, up by 0.73 per cent.

Earlier in the day, Bajaj Finance announced that it plans to acquire 26 per cent stake in Pennant Technologies Private Limited for a total of Rs 267.50 crore. “We wish to inform you that the Company has entered into a binding term sheet with Pennant Technologies Private Limited on 16 October 2023 for the acquisition of up to 26 per cent equity stake in Pennant,” the company said in a regulatory filing.

The acquisition, it added, is likely to be completed by December 30, 2023.

As part of the deal, 4,22,738 equity shares from promoters and existing shareholders of Pennant will be offered to Bajaj Finance. Besides, 5,71,268 Compulsorily Convertible Preference Shares (Series A CCPS) of face value of Rs 100 each will go to Bajaj Finance.

Pennant, which has a turnover of Rs 74.28 crore in FY23, is engaged in providing business-driven technology services and software products for the banking and financial services industry.

Also read: Bajaj Finance shares gain ahead of Q2 results. Profit may jump 30%, say analysts

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