Bajaj Finance posted a net profit of ₹2,624 crore for the third quarter of FY23, up 36% year-on-year, led by strong disbursements and strong growth in net interest income (NII).
The NII for the quarter was 22 per cent higher at ₹6,759 crore. The company said NII growth would have been 26 per cent after adjusting for ₹203 crore raised in IPO financing in the corresponding quarter of the previous year, which has since been put on hold due to a change in regulation.
The assets under management of the NBFC grew by 27 per cent to ₹1.7 lakh crore as of December 31.
The annualized return on average assets for the third quarter was 6.5% from 6.1% a year ago, and the annualized return on average equity also improved to 22.2% from 20.0%.
On a consolidated basis, Bajaj Finance posted its highest quarterly profit of Rs 2,973 crore, up 40% year-on-year. Consolidated results include wholly owned subsidiaries Bajaj Housing Finance, Bajaj Financial Securities and their sister company Snapwork Technologies.
New loans booked during the third quarter were the highest ever at 7.84 million on a consolidated book. The number of clients grew 19 percent to 66.05 million as of December 31.
Consolidated AUMs were 27% higher at ₹2.3 lakh crore, while NII growth was 24% at ₹7435 crore.
Consolidated credit losses and provisions for the third quarter were Rs 841 crore, down from Rs 1051 crore in the same period a year earlier. Of this, Bajaj Finance accounted for ₹811 crore. The company had a macroeconomic and management overlap of ₹1000 crore as of December 31, of which ₹758 crore was held by Bajaj Finance.
The consolidated gross book delinquency ratio improved to 1.14 percent from 1.73 percent. The net delinquency rate of 0.41% was also better than the 0.78% a year ago. The provision coverage ratio for stage 3 assets was 64 percent and 116 bp for stage 1 and 2 assets as of December 31.
The consolidated capital adequacy ratio was 25.14 percent, of which Tier I capital was 23.28 percent.
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