Bajaj Finance’s consolidated net profit for Q1FY24 rose 32 per cent year-on-year to ₹3,437 crore. Adjusted for reversal of deferred tax liability of ₹73 crore, profit after tax was up 30 per cent.
The NBFC saw the highest-ever loans booked of 99.4 lakh during the quarter, up 34 per cent y-o-y. The customer franchise too saw a record increase of 38.4 lakh taking the total to 7.3 crore customers as of June 30, up 21 per cent y-o-y. The company said it expects to add 1.2-1.3 crore new customers in FY24.
B2B (business-to-business) disbursements for the quarter were up 37 per cent yoy at ₹22,625 crore. However, rural B2B business growth was muted due to weak risk metrics, the company said adding that it took “risk actions in Rural B2C business” during Q1.
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Consolidated assets under management were up 32 per cent to ₹2.7 lakh crore as of June 30, with the company pegging AUM growth for FY24 at 29-31 per cent.
The consolidated earnings include the results of wholly-owned subsidiaries Bajaj Housing Finance, and Bajaj Financial Securities and its associate company Snapwork Technologies from November 2022 onwards.
On a standalone basis, Bajaj Finance posted a profit after tax of ₹2,959 crore, up 26 per cent y-o-y. AUM was up 33 per cent to ₹2.0 lakh crore.
Bajaj Finance’s consolidated net interest income was up 26 per cent at ₹8,398 crore. Cost of funds increased 22 bps on quarter to 7.61 per cent.
“Given strong ALM (asset-liability) management and diversified balance sheet profile, net impact on NII sequentially was 11 bps. We expect gradual moderation in NII to continue through FY24,” it said in the investor presentation.
Loan losses and provisions for the quarter were ₹995 crore, higher than Rs 755 crore a year ago. The NBFC held management and macro-economic overlay of ₹840 crore as of June 30.
Gross NPA ratio improved to a record low of 0.87 per cent from 1.25 per cent a year ago. The net NPA ratio at 0.31 per cent too was better than 0.51 per cent in the previous year. Provisioning coverage ratio was at 65 per cent.
Deposits grew 46 per cent y-o-y to ₹49,944 crore as at the end of June 30, with net deposit growth for the quarter at ₹5,278 crore. Deposits contributed to 21 per cent of consolidated borrowings of the company.
Capital adequacy ratio stood at 24.61 per cent, of which tier-I capital was 23.01 per cent.