Mumbai, India – Bajaj Finance, one of India’s leading non-banking financial companies, has reported a robust financial performance for the fourth quarter of the fiscal year 2022. The company has exceeded market expectations by posting a net profit of Rs. 1,683 crore for the quarter ended March 31, 2022. The strong performance has been attributed to the company’s ability to capitalize on the robust loan demand in the market.
Bajaj Finance’s net profit for the quarter ended March 31, 2022, was up by 3.3% compared to the same quarter of the previous year. The company’s total income for the quarter stood at Rs. 8,114 crore, up by 2.2% compared to the same quarter of the previous year. The company’s net interest income for the quarter grew by 1.3% to Rs. 4,948 crore, while its assets under management (AUM) stood at Rs. 1.81 lakh crore, up by 10.2% compared to the same period last year.
Commenting on the financial results, Rajeev Jain, Managing Director of Bajaj Finance, said, “We are pleased to report a strong financial performance for the fourth quarter of the fiscal year 2022. Our ability to capitalize on the robust loan demand in the market has helped us exceed market expectations. We remain committed to providing our customers with innovative and customized financial solutions that meet their evolving needs.”
The company’s loan losses and provisions for the quarter ended March 31, 2022, stood at Rs. 1,214 crore, up by 64% compared to the same quarter of the previous year. The company’s gross non-performing assets (NPA) stood at 2.96%, up from 1.79% in the same quarter of the previous year. The company’s net NPA stood at 1.10%, up from 0.75% in the same quarter of the previous year.
Despite the increase in loan losses and provisions, Bajaj Finance’s capital adequacy ratio (CAR) remained strong at 27.36% as of March 31, 2022. The company’s liquidity position also remained robust, with cash and cash equivalents of Rs. 21,683 crore as of March 31, 2022.
Bajaj Finance’s performance in the fourth quarter of the fiscal year 2022 was driven by strong demand for loans in the market. The company’s consumer finance business, which accounts for a significant portion of its loan book, continued to grow at a healthy pace. The company’s mortgage business also performed well, with the growth in disbursements driven by the strong demand for housing loans.
The company’s focus on digital transformation and customer-centricity has also helped it drive growth in its business. The company’s digital initiatives, such as its mobile app, have helped it reach a wider customer base and provide a seamless customer experience. The company’s focus on innovation and product customization has also helped it differentiate itself from its peers and drive customer loyalty.
Looking ahead, Bajaj Finance remains optimistic about its future growth prospects. The company expects the demand for loans to continue to remain robust, driven by the government’s focus on infrastructure development and the strong economic recovery. The company is also focused on expanding its presence in newer geographies and growing its business in existing segments. The company’s strategy is to focus on providing innovative and customer-friendly financial services that can help customers meet their short-term borrowing needs. With the launch of several digital initiatives, Bajaj Finance has been able to expand its reach and make it easier for customers to avail its services.
In conclusion, Bajaj Finance’s strong financial performance in the fourth quarter of the fiscal year 2022 highlights its ability to capitalize on the robust loan demand in the market. The company’s focus on digital transformation and customer-centricity has helped it differentiate itself from its peers and drive growth in its business. With its strong capital position, Bajaj Finance is well placed to take advantage of the improving economic environment and emerge as a leader in financial services.
