Bajaj Finance Q2 Results: Profit dips 36% YoY to Rs 965 crore


New Delhi: Bajaj Finance NSE -0.90 % on Wednesday posted 35.94 per cent year-on-year (YoY) drop in net profit at Rs 964.88 crore for the quarter ended September 30. Analysts in an ET NOW had projected the figure at Rs 1,037 crore.

The company had posted a profit of Rs 1,506.29 crore in the corresponding quarter last year.

Net interest income of the NBFC increased 4 per cent YoY to Rs 4,165 crore. ET NOW poll had expected the figure at Rs 4149 crore. “During the quarter, as a measure of prudence, the company has reversed capitalised interest of Rs 142 crore. The total amount of interest income reversed in H1FY21 was Rs 361 crore,” Bajaj Finance said in a release.

Consolidated assets under management (AUM) increased marginally by around 1.15 per cent YoY to Rs 1.37 lakh crore as September 30.

Shares of the company traded 0.89 per cent down at Rs 3,233 after the announcement of quarterly result, while the benchmark BSE Sensex was down 0.45 per cent at 40,360.

Bajaj Finance’s asset quality improved with gross non-performing assets (NPA) at 1.03 per cent, as against 1.61 per cent as of September 30 last year. Net NPA also declined to 0.37 per cent from 0.65 per cent YoY.

Loan losses and provisions for Q2 stood at Rs 1,700 crore as against Rs 594 crore last year. “Consequent to the ongoing pandemic, the company has further increased its provisions on stage 1 and 2 assets by Rs 1,370 crore to Rs 5,099 crore as of September 30. The company has strong pre-provisioning profitability to manage loan losses arising out of Covid-19,” Bajaj Finance said.