Bajaj Finance announces results for April-June quarter (Q1 FY27)
The country’s well-known finance company Bajaj Finance has declared the results for the April-June quarter (Q1 FY27). The company has made tremendous earnings in the first quarter of this year. The company’s net profit has jumped by 27.4% to Rs 5,986 crore. At the same time last year, the company had earned Rs 4,699 crore. On July 30, Bajaj Finance shares closed at Rs 1056.05 in the stock market.
treasury full of interest earnings
The real income of any finance company comes from the interest that it charges from its customers. Bajaj Finance has performed well on this front. The company’s net interest income (NII) has increased by 23% to Rs 12,571 crore. Last year this figure was Rs 10,288 crore. Apart from this, the total business of the company, which is called Assets Under Management (AUM) in financial language, has also increased by 24% and has crossed Rs 5.46 lakh crore. That is, the company has spread its money in the market more than before.
Loan divided heavily on gold and tractor
The biggest reason behind this huge surge in the company’s business is the loans given to the common people. The biggest increase has been seen in gold loans i.e. loans given against gold. There has been a tremendous jump of 112% and it has increased to Rs 21,152 crore. After this comes the loan taken for purchasing commercial vehicles and tractors, which has more than doubled (102%) to Rs 4,355 crore.
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Be it village or city, the company has got good business from everywhere. There has been an increase of 49% in loans distributed in rural areas and 38% increase in urban loans. There has also been a 34% increase in loans given against shares. Along with this, the company has also gained good momentum in the case of home loan (increase of 27%) and car loan (increase of 28%).
Bad debts reduced, company got big relief
When a company disburses a loan, the biggest fear is of losing money. But there is very good news for Bajaj Finance here also. There has been a reduction in the company’s bad loans i.e. non-performing assets (NPA). Gross NPA has come down from 1.03% in March quarter to 0.96% now. At the same time, Net NPA has also improved from 0.50% to 0.39%. This figure shows that people are paying their EMIs on time and the company’s money is safe in the market.
New customers are joining rapidly
How fast the company’s work is growing can be gauged from the fact that in this quarter the company has passed 1.61 crore new loans. At the same time last year, 1.34 crore loans were given, which means there has been a direct jump of 20%. The operating profit of the company has also increased by 22% to Rs 10,137 crore. To avoid any future financial mishap, the company has also reserved a separate fund of Rs 296 crore. If we remove this, the company’s bad debt (provisioning) has actually reduced by 13%.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.
