Bajaj Finance Q2 Results: PAT Up 28% To Rs 3,551 Cr, NII Climbs 26% YoY

Today, the Bajaj Finance Limited (BFL) Board of Directors met to discuss and approve the unaudited standalone and consolidated results for the quarter ended September 30, 2023. According to the corporation, profit after tax climbed by 28% in the second quarter of FY24, from Q2 FY23's PAT of Rs 2,781 to Rs 3,551 crore. Net interest income for the firm rose from Rs 7,002 crore in Q2 FY23 to Rs 8,845 crore in Q2 FY24, a 26% rise.

Its Assets Under Management (AUM) increased from Rs 218,366 crore on September 30, 2022, to Rs 290,264 crore on September 30, 2023, a 33% growth. AUM climbed to Rs 20, 167 crore in Q2 FY24. According to Bajaj Finance, the number of new loans booked during the second quarter of FY24 jumped by 26% to 8.53 million from 6.76 million in the second quarter of FY23.

September 30, 2022. In Q2 FY24, the company's customer base grew by 3.58 million. According to the corporation, the operating expenses to net interest income ratio for the second quarter of FY24 was 34.0% as opposed to 35.9% in the same quarter of FY23.

According to the company, loan losses and provisions for Q2 FY24 were Rs 1,077 crore as opposed to Rs 734 crore in Q2 FY23. As of September 30, 2023, the company has a management and macroeconomic overlay of Rs 740 crore. Its Gross NPA and Net NPA were 0.91% and 0.31%, respectively, as of September 30, 2023, as opposed to 1.17% and 0.44% as of September 30, 2022. As of September 30, 2023, the company's provisioning coverage ratio for stage 3 assets was 66%.

According to Bajaj Finance, its capital adequacy ratio as of September 30, 2023, including Tier-II capital, was 23.19%. Tier-I capital was at 21.88%. Subject to shareholder approval, the Board of Directors approved the issuance of securities on October 5, 2023 for a total value of up to Rs 8,800 crore through qualified institutional placement to qualified institutional buyers and a preferential issue of up to 1,550,000 warrants to Bajaj Finserv Limited, the promoter and holding company, for a total value of up to Rs 1,200 crore.

On October 16, 2023, the company and Pennant Technologies Private Limited signed a legally binding term sheet for the acquisition of up to 26% of the company's shareholding on a fully diluted basis for a total of approximately Rs 267.50 crore. Subject to the fulfillment of the requirements to be outlined in the definitive agreements to be made, the transaction is anticipated to close on or before December 30, 2023.

Bajaj Finance holds the highest credit rating of AAA/Stable for its long-term debt programme from CRISIL, ICRA, CARE and India Ratings, A1+ for short-term debt programme from CRISIL, ICRA and India Ratings and AAA (Stable) for its fixed deposits programme from CRISIL and ICRA. The company has been assigned long-term issuer rating of BBB-/Stable and short-term issuer rating of A-3 by S&P Global ratings, as per a stock exchange filing.