Bajaj Finance Q3 After Tax Profit Jumps 40% YoY To Rs 2,973 Crore; NII up 24%

Bajaj Finance on Friday reported a 40 percent increase in after-tax profit to Rs 2,973 crore in the third quarter ended December 2022 (Q3 FY23). Net interest income (NII) in October-December 2022 was Rs 7,435 crore, an increase of 24 percent compared to Rs 6,005 crore in the same period a year ago.

The company’s after-tax profit was Rs 2,125 crore in the corresponding quarter a year ago.

The “total operating expenses relative to net interest income” for the December 2022 quarter was 34.7 percent, up from 35.9 percent in Q2 FY23 and 34.7 percent in Q3 FY22, according to a BSE filing.

Bajaj Finance’s assets under management (AUM) grew by 27 percent to Rs 2,30,842 crore as of 31 December 2022, from Rs 181,250 crore as of 31 December 2021.

New loans booked during 03 FY23 were the highest ever at 7.84 million. Customer franchise was 66.05 million as of December 31, 2022 compared to 55.36 million as of December 31, 2021, a growth of 19 percent. The company posted the highest quarterly increase ever in its customer franchise of 3.14 million in 03 FY23.

Gross NPA and net NPA as of December 31, 2022 were 1.14 percent and 0.41 percent, respectively, up from 1.73 percent and 0.78 percent a year ago. The Company has a provision coverage ratio of 64 percent on Stage-3 assets and 116 basis points on Stage-1 and -2 assets as of December 31, 2022. Capital adequacy ratio (including Tier-II capital) as of December 31, 2022, was 25.14 per cent. Tier-I capital was 23.28 percent.

Bajaj Finance’s annualized return on average assets for Q3 FY23 was 5.4 percent, up from 5.1 percent in Q3 FY22. The annualized return on average equity for Q3 FY23 was 24 percent, up from 21.2 percent in Q3 FY22.

During the quarter, the company acquired a 41.5 percent stake (on a fully diluted basis) in Snapwork Technologies Private Limited for 92.74 crore with the intention of strengthening its technology roadmap.

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