Bajaj Finance's Q3 net profit climbs 22.4% to Rs. 3,639cr
Bajaj Finance has posted a 22.4% increase in consolidated net profit for the October-December quarter of the present fiscal year. The sum has reached Rs. 3,638.95 crore. This growth aligns with Dalal Street estimates, which anticipated a 25% year-on-year (YoY) increase to Rs. 3,716 crore. The profit surge is attributed to a rise in net interest income (NII) and improved asset quality.
AUM crosses Rs. 3 lakh crore
In Q3, Bajaj Finance announced that its assets under management (AUM) surpassed the Rs. 3-lakh-crore milestone for the first time, with a 35% YoY growth. The company's AUM increased by Rs. 20,704 crore to Rs. 3.11 lakh crore as of December 31, 2023, up from Rs. 2.31 crore as of December 31, 2022. The Q3 update also disclosed a 35% growth in deposit book to Rs. 58,000 crore and a booking of 98.6 lakh new loans, marking 26% YoY increase.
NII up by 29%
The lender's NII reached Rs. 7,655 crore during the quarter, a 29% increase from Rs. 5,922 crore in the same period last year. Analysts predict that stable asset quality and robust AUM growth will continue to boost earnings.
Improvements in both gross and net NPA
The non-bank lender reported improvements in both gross non-performing assets (NPA) and net NPA during the reporting quarter. As of December 31, last year, gross NPA and net NPA stood at 0.95% and 0.37%, respectively, compared to 1.14% and 0.41% as of December 31, 2022. Bajaj Finance maintains a provisioning coverage ratio of 62% on stage 3 assets as of December 31, 2023, and a capital adequacy ratio (CRAR) of 23.87%.
