Bajaj Finance surges on good results and stock split

Bajaj Finance has posted better than normal results in Q1FY17. Total income from operation stands at Rs 2301 crores which has increased by 39 per cent as compared to Q1FY16.Net profit is seen at Rs 424 crore, a surge of almost 54 per cent as compared to Q1FY16.

Loan losses and provisions have increased by 75 per cent and stand at Rs 180 crores; whereas in Q1FY16 it stood at Rs 103 crores. In Q1FY17, company has made an additional provision of Rs 19.1 crores in its mortgage portfolio. Loan losses and provision have grown by 56 per cent in this quarter.

AUM as of June 2016 stands at Rs 49608 crores from Rs 35557 crores as of June 2015. AUM has increased by 40 per cent.

The board of directors on July 26 approved issue of one fully paid bonus equity share for one share held and sub-division of equity shares of face value of Rs 10 each into Rs 2 each, subject to approval of the shareholders.

Gross NPA and Net NPA as of 30 June 2016 stand at 1.47 per cent and 0.41 per cent respectively. Provision coverage ratio stands at 73 per cent. On the other hand, company has moved its NPA recognition policy from 150 days overdue to 120 days overdue. Comparable gross and net NPA stand at 1.25 per cent and 0.30 per cent respectively. Capital adequacy ratio stands at 17.82 per cent.

The shares as on July 26, at 12.18 pm have surged over 4 per cent and are trading at Rs 9350. Shares in the last 3 months have surged by 35 per cent.