Bajaj Finance Q1FY22 result: Consumer finance major's net profit rises 4.2% to Rs 1,002 crore, asset quality weakens

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Bajaj Finance's Q1FY22 results showed consolidated net interest income for during the quarter grew 8% to Rs 4,489 crore from Rs 4,152 crore, YoY

Non-banking finance company Bajaj Finance on Tuesday reported a 4.2 percent growth in consolidated net profit for the first quarter of FY22, with asset quality weakening.
The company posted a net profit of Rs 1,002 crore in Q1FY22 as compared to Rs 962 crore in the year-ago quarter.
Bajaj Finance's consolidated net interest income (NII) during the quarter grew 8 percent to Rs 4,489 crore from Rs 4,152 crore, YoY. The interest income reversal for the quarter was Rs 451 crore as compared to Rs 306 crore in the year-ago period, the company said in a regulatory filing.
The company's net profit was lower than CNBC-TV18 analysts' poll estimates of Rs 1,447 crore, while NII beat estimates of Rs 4,339 crore.
The consolidated results of Bajaj Finance include the results of its wholly-owned subsidiaries Bajaj Housing Finance (BHFL) and Bajaj Financial Securities (BFinsec).
Loan losses and provisions for Q1FY22 increased by 3.8 percent to Rs 1,750 crore as against Rs 1,686 crore in Q1FY21.
“During the quarter, the company has done accelerated write-offs of Rs 113 crore of principal outstanding on account of COVID-19 related stress. The company holds a management overlay and macro provision of Rs 483 crore as of 30 June 2021,” Bajaj Finance said.
Asset quality weakened during the quarter as the gross non-performing assets (GNPAs) increased to 2.96 percent from 1.79 percent and net non-performing assets rose to 1.46 percent from 0. 75 percent, QoQ.
The company said it had a provisioning coverage ratio of 51 percent on stage 3 assets and 174 bps on stage 1 and 2 assets as of June 2021.
The capital adequacy ratio (including Tier-II capital) as of June 30, 2021, was 28.57 percent. The Tier-I capital was 25.41 percent.
New loans booked during Q1FY22 were 4.63 million as against 1.75 million in Q1FY21, the company said.
Its customer franchise crossed a milestone of 50 million and stood at 50.45 million as of June 2021 as compared to 42.95 million as of June 2020, a growth of 17 percent. The company acquired 1.88 million new customers in Q1FY22 as compared to 0.53 million in Q1FY21, it added.
Assets under management (AUM) grew by 15 percent to Rs 159,057 crore (including IPO financing receivables of Rs 2,942 crore) as of June 2021 from Rs 138,055 crore as of June 2020. Core AUM growth Q1FY22 was approximately Rs 4,100 crore.
On Tuesday, the shares of Bajaj Finance ended 1.24 percent lower at Rs 5,937.90 apiece on the BSE.

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