Bajaj Finance Ltd saw its net profit jump 48 per cent to Rs 129 crore in the second quarter (Rs 87 crore in the year-ago period) on the back of higher interest and fee income.
The Pune-based subsidiary of Bajaj Finserv reported a 49 per cent rise in interest and fee income at Rs 737 crore (Rs 493 crore).
The company gives loans to small and medium enterprises, consumers and commercial establishments.
Customer base, disbursements
The company’s customer base increased to 6,00,792 in July-September from 4,91,695 a year ago.
It reported a 29 per cent year-on-year rise in total disbursements at Rs 4,334 crore (Rs 3,352 crore).
However, its disbursements in the commercial segment dropped 12 per cent.
The commercial business for the company comprises lending to infrastructure and to automotive original equipment manufacturers.
“Our infra commercial business has shown de-growth in the quarter which is a reflection of the broader trends in the infrastructure segment of the economy,” Rajeev Jain, Chief Executive Officer, said.
Expenses
Interest expenses rose 77 per cent to Rs 295 crore, while operating expenses were up 30 per cent at Rs 199 crore.
“Bank borrowing has become costly and transmission by the way of rate cuts is not happening as desired,” Jain added, to explain the rise in interest expenses.
The company raises half of its funds through bank borrowings.
Shares of the company, which touched an all-time high of Rs 1,310 in intra-day trade, ended down 1.12 per cent at Rs 1, 275 on the Bombay Stock Exchange.