Bajaj Finance Net up 20pc on higher retail, SME lending

Tags: News
Bajaj Finance today reported 20 per cent jump in the June quarter net profit at Rs 211 crore on the back of jump in deployments to consumers and small businesses.

The Pune-headquartered non-banking company said there was 48 per cent rise in deployments during the quarter at Rs 9,266 crore.

Chief Executive Rajeev Jain attributed the good set of numbers partly to seasonal factors, saying the first and the third quarters are generally busy for the company.

The deployment growth was led primarily by the small and medium enterprises and consumer segments, which grew 54 per cent and 48 per cent, respectively.

Its total income was up 34 per cent to Rs 1,246 crore while profit before tax jumped 20 per cent to Rs 321 crore.

Jain said the gross non-performing assets ratio was largely flat at 1.13 per cent, while the net non-performing assets ratio marginally improved to 0.27 per cent.

An accelerated provision of Rs 10 crore resulted in the loan loss provisions going up to Rs 83 crore from Rs 60 crore last year, Jain said.

The accelerated provision is for assets which the company feels might turn bad in the coming quarter and is a prudent practice adopted by it, he said, adding this shall get utilised in the next two quarters.

The company's total capital adequacy ratio stood at 18 per cent while it may be going in for a round of capital raising in early next fiscal, Jain said.

However, he did not elaborate, saying it is very early to comment.

On the regular funding for onlending activities front, he said there was some benefit as the rates eased by up to 0.25 per cent during the quarter, but was quick to add that the margins did not benefit much through this as the benefit was felt in short-term funds, which account only for 10-12 per cent of its funding.

The company's scrip gained 0.09 per cent to close at Rs 2,186.70 apiece on the BSE, whose 30-share benchmark Sensex ended the session with gains of 1.27 per cent.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • It will take at least 4 more quarters for corporate bottomlines to turn around

    Aggregate numbers from corporate results in the June quarter of 2014-15 are hardly different from the previous six quarters, with no positive surprise

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Dealing with a sin called insensitivity

Rage and the notion of being above the law — ...

Kuruvilla Pandikattu SJ

India’s greatest gift to the world

What we hear most often about India these days is ...

Gautam Gupta

Why must innerwear be our best kept secret?

While women’s outerwear rules the marketing roost in India, unfortunately, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture