Trade Nivesh | The stock touched a fresh record high of Rs 4,326 on the BSE after strong earnings growth.
Bajaj Finance on January 29 reported a healthy 52 percent year-on-year growth in profit for October-December quarter of 2019 driven by strong NII and AUM with stable asset quality.
Profit during the quarter stood at Rs 1,614 crore up from Rs 1,060 crore in same period last year.
Net interest income rose by a whopping 42 percent year-on-year to Rs 4,537 crore in quarter ended December 2019, with 13 percent growth in new loans, Bajaj Finance said in its BSE filing.
"New loans booked during Q3FY20 increased by 13 percent to 7.67 million and customer franchise increased by 24 percent to 40.38 million as of December 31, 2019 YoY," it added.
Numbers beat analyst estimates. Profit was estimated at Rs 1,523.6 crore and net interest income at Rs 3,561 crore for the quarter, as per average of estimates of analysts polled by CNBC-TV18.
Total revenue from operations grew by 40.6 percent year-on-year to Rs 7,011 crore in Q3, driven by fund raising (Rs 8,500 crore).
Assets under management for the quarter met analyst expectations, growing at 35 percent year-on-year to Rs 1.45 lakh crore.
Gross NPA was unchanged at 1.61 percent QoQ, but net NPA increased 5bps sequentially to 0.70 percent in Q3FY20.
Loan losses and provisions (expected credit loss) for Q3 was Rs 831 crore (increased significantly from Rs 451 crore in Q3FY19 and Rs 594 crore in Q2FY20).
"During the quarter, the company has made an accelerated provision of Rs 85 crore in its loan against securities portfolio. Adjusted for this, loan losses and provisions (expected credit loss) for Q3 was Rs 746 crore," Bajaj Finance said.
Total slippages for the quarter at Rs 936 crore increased 19 percent over Rs 786 crore reported in Q2FY20.
Bajaj Finance said the two and three-wheeler portfolio marked 'Red' from 'Yellow' on sequential basis in Q3FY20.
"Two and three-wheeler portfolio with more than 30 days due increased to 6.83 percent at the end of December quarter (against 5.97 percent QoQ) and loan against property portfolio with more than 30 days due also rose to 2.84 percent (from 2.3 percent QoQ)," the non-banking finance company said.
Lifestyle book with more than 30 days due, too, increased to 1.26 percent (from 1.14 percent QoQ), but home loans with more than 30 days due declined to 0.29 percent (against 0.35 percent QoQ) and digital portfolio with more than 30 days due also dropped to 1.21 percent (against 1.35 percent QoQ).
Bajaj Finance said they have been seeing some uptick in our consumption category since December and the same has continued in January so far. "Republic Day sale momentum was strong."
Meanwhile, the company appointed Deepak Bagati as Chief Risk Officer in place of Fakhari Sarjan.
The stock touched a fresh record high of Rs 4,326 on the BSE after strong earnings growth. It was quoting at Rs 4,324, up Rs 110.95, or 2.63 percent, at 1345 hours IST.
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Bajaj Finance on January 29 reported a healthy 52 percent year-on-year growth in profit for October-December quarter of 2019 driven by strong NII and AUM with stable asset quality.
Profit during the quarter stood at Rs 1,614 crore up from Rs 1,060 crore in same period last year.
Net interest income rose by a whopping 42 percent year-on-year to Rs 4,537 crore in quarter ended December 2019, with 13 percent growth in new loans, Bajaj Finance said in its BSE filing.
"New loans booked during Q3FY20 increased by 13 percent to 7.67 million and customer franchise increased by 24 percent to 40.38 million as of December 31, 2019 YoY," it added.
Numbers beat analyst estimates. Profit was estimated at Rs 1,523.6 crore and net interest income at Rs 3,561 crore for the quarter, as per average of estimates of analysts polled by CNBC-TV18.
Total revenue from operations grew by 40.6 percent year-on-year to Rs 7,011 crore in Q3, driven by fund raising (Rs 8,500 crore).
Assets under management for the quarter met analyst expectations, growing at 35 percent year-on-year to Rs 1.45 lakh crore.
Gross NPA was unchanged at 1.61 percent QoQ, but net NPA increased 5bps sequentially to 0.70 percent in Q3FY20.
Loan losses and provisions (expected credit loss) for Q3 was Rs 831 crore (increased significantly from Rs 451 crore in Q3FY19 and Rs 594 crore in Q2FY20).
"During the quarter, the company has made an accelerated provision of Rs 85 crore in its loan against securities portfolio. Adjusted for this, loan losses and provisions (expected credit loss) for Q3 was Rs 746 crore," Bajaj Finance said.
Total slippages for the quarter at Rs 936 crore increased 19 percent over Rs 786 crore reported in Q2FY20.
Bajaj Finance said the two and three-wheeler portfolio marked 'Red' from 'Yellow' on sequential basis in Q3FY20.
"Two and three-wheeler portfolio with more than 30 days due increased to 6.83 percent at the end of December quarter (against 5.97 percent QoQ) and loan against property portfolio with more than 30 days due also rose to 2.84 percent (from 2.3 percent QoQ)," the non-banking finance company said.
Lifestyle book with more than 30 days due, too, increased to 1.26 percent (from 1.14 percent QoQ), but home loans with more than 30 days due declined to 0.29 percent (against 0.35 percent QoQ) and digital portfolio with more than 30 days due also dropped to 1.21 percent (against 1.35 percent QoQ).
Bajaj Finance said they have been seeing some uptick in our consumption category since December and the same has continued in January so far. "Republic Day sale momentum was strong."
Meanwhile, the company appointed Deepak Bagati as Chief Risk Officer in place of Fakhari Sarjan.
The stock touched a fresh record high of Rs 4,326 on the BSE after strong earnings growth. It was quoting at Rs 4,324, up Rs 110.95, or 2.63 percent, at 1345 hours IST.
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