Wednesday, July 13, 2011

Bajaj Finance Q1 net profit up 94% on robust loan growth

Non-banking finance company Bajaj Finance's June quarter net profit surged 94% year-on-year to Rs 91 crore on the back of robust loan book growth. Its loan disbursements rose 75% y-o-y to Rs 3,588 crore despite rising interest rates.

The company's net interest income rose 38% y-o-y to Rs 310 crore suggesting that the company has successfully passed on the higher cost of borrowings to its customers. Total asset under management stood at Rs 9,025 crore, a whopping jump of 83% y-o-y.
The net non-performing assets have sequentially improved to 0.46% in June quarter as against 0.80% recorded in March quarter. However, provisioning coverage ratio dropped sequentially from 79% to 78%.

Company’s current capital adequacy ratio stood at 19% and it is planning to raise capital in FY12 through a qualified institutional placement issue, already approved by the company board.

The company's total income was up 52% at Rs 452 crore.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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