Bajaj Finance Q4 net up 30% on strong loan growth

Mumbai: Bajaj Finance reported a 30% rise in net profit for the quarter ended March 2023 as demand for loans remained strong.

Net profit increased to ₹3,158 crore in the January-March quarter up from ₹2,420 crore a year ago, particularly because of a surge in new loans. Number of new loans booked during the quarter grew 20% to 7.56 million from 6.28 million a year ago.

Company's total assets under management (AUM) grew 29% to ₹2.47 lakh crore as of March 31, 2023, from ₹1.92 lakh crore as of March 31, 2022. AUM growth in the quarter was highest-ever at ₹16,537 crore.


Company's net interest income (NII), or the difference between the interest earn on loans and that paid for funds, increased 28% to ₹7,771 crore from ₹6,061 crore in Q4 FY22. Gross NPAs for the company stood at 0.94% in March 2023 down from 1.60% a year ago. The company has provisioning coverage ratio of 64% on stage 3 assets. It increased provisions for loan losses to ₹859 crore from ₹702 crore a year ago. The company holds another ₹960 crore provisions as of March 31, 2023.

Bajaj Finance booked the highest number of new loans in fiscal ended March 2023 at 29.58 million as against 24.68 million in FY22 - a growth of 20%.

Consolidated net profit for the fiscal increased 64% to ₹11,508 crore from ₹7,028 crore in FY22.

Bajaj Finance is likely to tap the debt capital markets on Friday and sell non-convertible debentures up to a total of ₹4,000 crore, sources said.

The sale includes a base size of ₹800 crore and a green shoe option of ₹3,200 crore and is for NCDs maturing in four years, eleven months, and ten days. The coupon - or the rate of interest paid out to investors - is likely to be around 7.86%, sources said.

Earlier this month, the company had issued two tranches of bonds worth a total of ₹1,955 crore, reports said.