Saturday, May 19, 2012

Bajaj Finance Q4 net jumps 52% on higher interest income


Pune-based non-banking finance company Bajaj Finance , has reported a jump of 52% year-on-year in its fourth quarter (Jan-March) net profit at Rs 108 crore, driven by higher interest income. Net interest income or the difference between interest earned and paid out, climbed 39% to Rs 389 crore.

The company recorded highest ever net profit of Rs 406 crore, a spurt of 64% y-o-y for the year ended March 31, 2012.

"The robust growth in interest interest income was the primary reason for posting higher net profit," Rajeev Jain, CEO, Bajaj Finance told Moneycontrol.com.

"Our commercial segement, which includes construction equipment, infrastructure financce and vendor financing recorded the highest loan growth with a lower base. We contiously did not grow commercial loans aggressively due to the prevailing stress in the sector. In FY13, we are aiming 
25% credit growth with more focus on SME and consumer lending," he said.



For the full year, loan disbursals surged 67% y-o-y to Rs 15,797 crore. Asset under management (AUM) shot up 73% to Rs 13,107 crore. Commercial loans more than doubled to Rs 4,346 crore from Rs 2040 crore a year back. Consumer credit, extended to buy white goods and two wheelers expanded 50% y-o-y to Rs 7,040 crore while loans to small and medium enterprises grew 62% to Rs 4,411 crore.

During the Jan-March period, loan losses and provisions however, rose 5% to Rs 40 crore. The company, according to Jain, further tightened provisioning policy against two-wheeler loans. This has led to an increase.

Net non-performing asset ratio improved to 0.12% as against 0.30% in Q3, FY12. The NBFC has introduced a new product on lifestyle finance, which will facilitate purchases of home furnitures, luxury watches, fitness equipments and others.

Bajaj Finance shares on Wednesday were down more than 3% to close the day at Rs 850 on the broader market crash. It has proposed to pay a dividend of Rs 12 per share.


Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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