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

Bajaj Finance on Friday reported a 40 per cent jump in profit after tax to Rs 2,973 crore during the third quarter ended December 2022 (Q3 FY23). Its net interest income (NII) during October-December 2022 stood at Rs 7,435 crore, a 24 per cent rise as compared with Rs 6,005 crore in the year-ago period.

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

Its ‘total operating expenses to net interest income’ for the December 2022 quarter was 34.7 per cent as against 35.9 per cent in Q2 FY23 and 34.7 per cent in Q3 FY22, according to a BSE filing.

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

New loans booked during 03 FY23 were highest ever at 7.84 million. Customer franchise stood at 66.05 million as of 31 December 2022 as compared to 55.36 million as of 31 December 2021, a growth of 19 per cent. The Company recorded highest ever quarterly increase in its customer franchise of 3.14 million in 03 FY23.

Gross NPA and Net NPA as of December 31, 2022, stood at 1.14 per cent and 0.41 per cent, respectively, as against 1.73 per cent and 0.78 per cent a year ago. The company has provisioning coverage ratio of 64 per cent on Stage-3 assets and 116 bps 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. The Tier-I capital was 23.28 per cent.

Bajaj Finance’s annualised return on average assets for Q3 FY23 was 5.4 per cent as against 5.1 per cent in Q3 FY22. Annualised return on average equity for Q3 FY23 was 24 per cent as against 21.2 per cent in Q3 FY22.

During the quarter, the company acquired 41.5 per cent stake (on fully diluted basis) in Snapwork Technologies Private Limited for 92.74 crore with an intention to strengthen its technology roadmap.

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