Bajaj Finance reported a 46 per cent year-on-year jump in second quarter net profit at ₹408 crore on the back of robust loan growth in the consumer, commercial and rural segments. Net profit in the year-ago quarter was ₹279 crore.
Net interest income (the difference between interest earned and interest expended) was up 40 per cent to ₹1,410 crore (₹1,006 crore).
Rajeev Jain, Managing Director, Bajaj Finance, said: “Overall, the topline was strong and expenses came in line. In general, the growth momentum across the consumer, SME, commercial and rural segments remained quite strong.”
As on September-end 2016, gross non-performing assets (GNPAs) edged down a tad to 1.58 per cent (1.88 per cent). Loan losses and provisions in the reporting quarter were up 23 per cent to ₹169 crore (₹137 crore).
Assets under management (AUM) as on September-end 2016 were up 38 per cent to ₹52,332 crore (₹37,964 crore).
Jain said he expects the AUM to touch ₹60,000 crore by the end of the current financial year.
Consumer loans grew 52 per cent year-on-year to ₹23,892 crore; commercial loans were up 61 per cent to ₹6,123 crore; rural loans jumped 195 per cent to ₹1,948 crore; and SME loans increased 14 per cent to ₹20,369 crore.
Meanwhile, the company’s board of directors approved a proposal to seek the approval of shareholders by postal ballot for raising funds via issue of non-convertible debentures or such other securities, as part of the proposed increase in overall borrowing limits to ₹75,000 crore from ₹50,000 crore.
Shares of Bajaj Finance closed at ₹1,105.15 apiece on Thursday, down 3.89 per cent.