Bajaj Fin Q1 profit up 42%

Plans to raise ~4,500 cr capital from institutional investors

Bajaj Finance has posted a sharp rise in profit in the quarter ended June on an increase in net interest income (NII) and growth in assets under management (AUM).

The non-banking finance company’s net profit during the quarter rose 42 per cent to ~602 crore from ~424 crore in the same period a year ago. Total income was ~3,165 crore, a 39 per cent rise from ~2,282 crore in the same quarter last year.

The NII increased 49 per cent, year on year, to ~2,087 crore from ~1,399 crore. Interest earnings rose 39 per cent against a 22 per cent increase in interest expense.

Bajaj Finance’s board has approved the issue of securities for approximately ~4,500 crore to institutional investors.

The company’s capital adequacy in June was 20.15 per cent, up from 17.85 per cent a year ago, with tier-I capital of 14.2 per cent. During the quarter, Bajaj Finance raised ~600 crore through tier-II bonds to augment its capital base.

The Bajaj Finance stock closed at ~1,540, up 2 per cent over its previous close on the Bombay Stock Exchange.

The non-banking finance company’s AUM during the quarter were ~68,883 crore, up from ~49,608 crore in the same period a year ago. This 39 per cent rise was due to year on year growth in rural lending by 132 per cent and consumer lending by 43 per cent. Lending to small and medium businesses posted the slowest growth of 17 per cent over the yearago period.

Bajaj Finance’s gross nonperforming assets ratio during the June quarter rose marginally to 1.7 per cent from 1.68 per cent in the previous quarter. Provisions during the quarter were ~286 crore against ~180 crore in the same period a year ago. The company’s provisioning coverage ratio in June was 69 per cent.