Bajaj Finance Ltd has reported a 48 per cent jump in net profit at Rs 129 crore (Rs 87 crore in Q2 FY’11) on the back of higher interest and fee income.
The Pune-based company reported a 49 per cent rise in interest and fee income at Rs 737 crore (Rs 493 crore in Q2 FY’11).
The company’s customer base increased to 6,00,792 in the July to September quarter from 4,91,695, a year ago. The company, which gives loans to small and medium enterprises, consumers and commercial establishments, reported a 29 per cent rise in total deployments.
However, its deployment in the commercial sector dropped 12 per cent, indicating a declining borrowing trend among large corporates. Interest expenses rose 77 per cent to Rs 295 crore, while operating expenses were up 30 per cent at Rs 199 crore.
Loan losses
The company also made a higher provision to cover loan losses in the quarter. It set aside 20 per cent or Rs 53 crore as a hedge against bad loans. In the corresponding quarter of the previous year, the company had set aside Rs 44 crore to cover loan losses.
Shares of the company, which touched an all-time high of Rs 1,310 in intra-day trade today, ended down 1.12 per cent at Rs 1, 275 on the Bombay Stock Exchange.