Bajaj Finance Limited reports 46% rise in profits in Q2
Bajaj Finance Limited continued its success streak with a significant rise in profits in the July-September 2016 quarter.
Net profit grew 46% to Rs 406 crore from the Rs 279 crore reported in the same September quarter last year. For the first half of the current financial year, profits stood at Rs 832 crore, a 50% jump from the same period in 2015-16.
This was on the back of a 40% jump in the Net Interest Income to Rs 1,410 crore from Rs 1,006 crore in the second quarter of FY16. A 56% increase in loans on a year-on-year basis helped this rise in interest income. The financial company gave out Rs 21.77 lakh crore worth loans in the second quarter-ended September 2016, compared to Rs 13.93 lakh crore last year.
Only 0.43% of the net advances turned non-performing in the quarter. Gross NPAs stood at 1.58%, as of September 2016. To fund these bad loans, Bajaj Finance Limited reported a 73% provisioning coverage ratio. This is above the RBI’s minimum requirements.
And yet, Bajaj Finance is well capitalized. Its capital adequacy ratio (CAR) stood at 21.48% at the end of the September 2016 quarter.
On the whole, Bajaj Finance Limited earned Rs 2,366 crore as income on the whole, a rise of 39% from last year’s Rs 1,701 crore. Its Assets under Management (AUM) too increased by 38% during the same period to Rs 52,332 crore. Even the number of new clients rose in the quarter by 26% to 18 million since September 2015.
In a recent letter, CRISIL has upgraded its rating on Bajaj Finance Limited’s Long Term Debt Programme and Bank Facilities to “CRISIL AAA/Stable” from “CRISIL AA+/Positive”.