Bajaj Finance Q3 profit rises 58%
Speaking to ET, Rajeev Jain CEO of the company said that the company expected profits to rise 60-65% in the fourth quarter and loan book to rise 70%.
Bajaj Finance has recorded a 58% rise in net profit for the third quarter ending December 2011 on the back of substantial rise in interest income.
The net profit for three month ending December 2011 stood at Rs 120 crore up from Rs 76 crore a year ago. Speaking to ET, Rajeev Jain CEO of the company said that the company expected profits to rise 60-65% in the fourth quarter and loan book to rise 70%.
The net interest income rose 39% to Rs 396 crore on account of a 74% rise in loan book to Rs 11919 crore.
Shares of Bajaj Finance closed at Rs 676, up 4.1% over yesterday close at the Bombay Stock Exchange.
On interest rates, Jain said that he expects the interest rate cycle to turn soon. "The first reflection of the reversal of rates will be seen only in the next quarter."
Regarding stress on the loan book due to economic slowdown and rising rates, he said that construction equipment financing business appears to be in strain. The company's net bad loans stood at 0.25%.
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