Bajaj Finance Q3 profit up 58% at Rs.408 crore
Bajaj Finance Limited reported a 58% year-on-year jump in net profit at Rs.408 crore for the third quarter ended December, 2015 (Q3FY16). The company’s stock price increased by 10% to Rs.6,422 after the company declared its Q3 financial results.
This is the highest ever share price on BSE for the company. Industry experts and analysts estimated a net profit of Rs.335 crore for the quarter.
The Managing Director of Bajaj Finance Limited, Rajeev Jain, was quoted by The Hindu Business Line saying: ‘We will continue to grow our balance sheet by around 25% on a sustainable basis over the medium term. We will end FY16 with a balance sheet size of Rs.45,000-46,000 crore.’
The net income witnessed a massive 39% increase, reaching Rs.2,069 crore for Q3 of FY16. The Assets Under Management (AUM) of the company increased by 41% over the year. The company has elevated its total market value with these numbers.
Gross Non-Performing Assets (NPAs) and net NPAs as of December 31, 2015, stood at 1.29% and 0.26%, respectively.
The company continues to provide for loan losses in excess of RBI requirements. During the quarter, the company sold NPA receivables of Rs.82 crore worth in Mortgage business on cash basis. This helped improve GNPA and NNPA performance.
Bajaj Finance Limited has a reliable capital adequacy ratio of 19.54%, which implies that the risk factor involved with the company is minimal.
The company wide Sparkling Diwali campaign led to an enormous rise in the number of customers obtained and helped augment growth in its Consumer and SME businesses in Q3 FY16.
The introduction of the mobile app also helped boost the number of acquired customers. The Bajaj Finserv Experia app, the first of its kind in India, lets customers avail EMI finance in a quick and easy manner. With this app, instant loan approvals can be obtained conveniently and so far, nearly 1 lakh customers have received loan approvals within a period of 60 days.