Bajaj Finance Q4 Results: Net profit jumps to Rs 2,420 crore, NII grows 30%

Bajaj Finance Limited reported an 80% year-on-year (YoY) rise in net profit at Rs 2,420 crore for the fourth quarter ended March 2022 from Rs 1,347 crore in the year-ago period.

The consolidated net profit grew by 59% to Rs 7,028 crore for March 2022 quarter from Rs 4,420 crore for the final quarter of the previous year.

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The board of directors has recommended a dividend of Rs 20 per share (1000%) of the face value of Rs 2 per share on equity shares for fiscal 2022. Bajaj Finance shares closed 3.31% higher at Rs 7,240 per share on the Bombay Stock Exchange (BSE).

Bajaj Finance’s consolidated report includes the results of its fully-owned subsidiaries Bajaj Housing Finance Ltd and Bajaj Financial Securities Ltd.

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The net interest income (NII) of the company grew 30% to Rs 6,068 crore for the March 2022 quarter from Rs 4,569 crore in the corresponding quarter of the previous year. New loans booked increased by 15% to 6.28 million in the reported quarter compared to 5.47 million in the March 2021 quarter.

The consolidated assets under management (AUM) increased by 29% to Rs 1,97,452 crore for the financial year 2021-22 from Rs 1,52,947 crore for the year 2020-21.

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Its loan losses and provision for the March 2022 quarter declined to Rs 702 crore from Rs 1,231 crore in the same quarter of fiscal 2021. The provision for March 2022 quarter includes an additional charge of Rs 100 crore for one large B2B commercial account.

The company owns a management and macro-economic overlay of Rs 1,060 crore as of March 31, 2022, Bajaj Finance said in a statement.

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Bajaj Finance has a provisioning coverage ratio of 58% for stage-3 assets (non-performing assets) as of March 31, 2022. Its asset quality profile improved with Gross NPAs declining to 1.6% in March 2022 from 1.79% in fiscal 2021. Similarly, net NPAs declined to 0.68% in the final quarter of 2022 from 0.75% in the year-ago period.

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The capital adequacy ratio stood at 27.22% with Tier-1 capital of 24.75% as of March 31, 2022.