 "Bajaj Finance Q1 results: Net profit increases 14% to Rs 3,912 crore | Company News")
The consolidated numbers include the businesses of the non-banking financial company’s subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities.
India’s Bajaj Finance reported a smaller-than-expected first-quarter profit on Tuesday, weighed by higher provisions for bad loans.
The company reported a consolidated net profit after tax of Rs 3,912 crore ($467.5 million) for the quarter ended June 30, compared to analysts’ estimates of Rs 4,029 crore, as per LSEG data.
The results include the businesses of the non-banking financial company’s subsidiaries, Bajaj Housing Finance and Bajaj Financial Securities.
Bajaj Finance’s loan losses and provisions – the money set aside to cover potential defaults – grew nearly 70% to Rs 1,685 crore, well ahead of analysts’ estimate of Rs 1,466 crore.
Exuberant lending in unsecured segments had led the Reserve Bank of India to mandate an increase in capital requirements for personal loans and credit cards in November.
Bajaj Finance previously said it has been grappling with elevated losses in the personal loans category, among its largest lending segments, especially among rural customers, leading to higher provisions.
Finance costs rose 38.5% to Rs 5,684 crore as Indian financial companies continue to grapple with higher borrowing expenses due to the RBI raising its key interest rate by 250 basis points since May 2022.
First Published: Jul 23 2024 | 3:54 PM IS
