Bajaj Finance Q2: Asset quality improves and net profit increases by 88% to Rs. 2,781 crores.
Bajaj Finance, the largest non-banking financial institution in India, announced a consolidated profit after tax (PAT) of Rs 2,781 crore for the quarter that ended September 2022 on October 20. This is an increase of 88 percent over the Rs 1,481 crore achieved in the same quarter of the previous fiscal.
Net profit increased sequentially by 7% from Rs 2,596 crore. According to a filing with the exchange, the corporation has declared its highest-ever consolidated quarterly profit after taxes.
Net interest income (NII) for the quarter rose from Rs 5,337 crore to Rs 7,001 crore, an increase of 31% year over year. According to the corporation, new loans booked increased by 7 percent YoY to 67.6 lakh. Assets under management (AUM) for the entire company increased by 31% to Rs 2,18,366 crore from Rs 1,66,937 crore in Q2FY22.
Both sequentially and compared to the previous year, asset quality increased. As of the end of September, the Gross and Net NPA percentages were 1.17 and 0.44 percent, respectively, compared to 2.45 and 1.10 percent during the same quarter last year. As of June's end, the gross and net NPA percentages were 1.25 and 0.51 percent, respectively.
Non-performing assets, or NPAs.
For Q2FY23, loan losses and provisions totaled Rs 734 crore, a decrease of 44 percent YoY and 2.8 percent QoQ. According to information provided in the exchange filing, the Company has a provisioning coverage ratio of 62 percent for Stage 3 assets and 120 bps for Stage 1 and 2 assets.
At the end of the second quarter of FY23, Bajaj Finance's capital adequacy ratio, which measures a bank's capital, was 25.13 percent, including tier-II capital.
By the end of September 2022, the franchise had 6.29 crore customers, an increase of 26.1 lakh. The total amount spent on B2B transactions increased by 15% to Rs 13,862 crore, according to the company's exchange report.
The management was advised that Bajaj Finance is on schedule to fully transition to digital by March 2023 for all products and services. The Apple and Google app stores now offer apps from the first phase of the app platform. In 3 sprints, Phase 2 will be live. Phase 2's Sprint 1 is currently live on Play Store, and Sprint 2 is on schedule.
"For fixed deposits, company loans, physician loans, and chartered accountant loans, Sprint 2 will offer end-to-end experiences. Along with service-related nudges and reminders, Sprint 2 will also include new feature additions in fixed deposit services, insurance services, and other areas "The business stated.
A completely owned subsidiary of Bajaj Finance, Bajaj Housing Finance, reported a post-tax profit of Rs 306 crore in Q2FY23 as opposed to Rs 166 crore in Q2FY22, an increase of 84 percent. AUM increased by 42% to Rs. 62,931 crores.
Another subsidiary, Bajaj Financial Securities, reported a profit after tax of Rs 1 crore as opposed to Rs 3 crore in Q2FY22.