Bajaj Finance Shares Tumble 5.6 Percent After Q1 Results on Asset Quality Concerns
Bajaj Finance’s consolidated net profit rose by a whopping 43% year-on-year to Rs 1,195 crore during the June quarter compared with Rs 835.9 crore in the same quarter last year.
Photo for representation only. (Image: Reuters)
Bajaj Finance Ltd shares tumbled as much as 5.6% in intraday trade on Thursday, i.e. 25 July, despite the non-banking finance company (NBFC) posting its highest ever quarterly consolidated profit in the three months ended June (Q1).
At 2:21 pm, shares of Bajaj Finance were trading at Rs 3,086.20, down 2.75%, on BSE after hitting an intra-day low of Rs 2,996.20. The stock has lost over 12% in the last five trading sessions.
Bajaj Finance’s consolidated net profit rose by a whopping 43% year-on-year to Rs 1,195 crore during the June quarter compared with Rs
835.9 crore in the same quarter last year. Net interest income (NII) during the quarter also grew 43% to Rs 3,695 crore, mainly led by a 29.1% rise in new loans booked.
Bajaj Finance said its consolidated assets under management jumped 41% year-on-year to Rs 1.29 lakh crore at the end of June 2019. The NBFC also increased its customer franchise by 31% to 3.69 crore as of June 2019, against 2.82 crore in June 2018.
However, some asset quality concerns surfaced during the June quarter. Gross non-performing assets (NPAs) as a percentage of gross advances increased by 6 basis points sequentially to 1.6%, while net NPAs rose 1 basis point to 0.64% during the quarter.
Bajaj Finance also saw loan losses and provisions climbing 69% year-on-year and 35% quarter-on-quarter to Rs 551 crore in the June quarter.
Earlier this month, the company had announced that it had booked 7.3 million new loans during quarter ended June 2019 against 5.6 million in same period last year. The company had added it acquired 2.5 million new customers in Q1.
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