Bajaj Finance is among the top five gainers on the BSE, going up over 7% to Rs.2230 and thanks to its surge, the feel-good factor has spread to other NBFCs too.
The stock price has gone up on the back of its very good performance for Q2FY19. The company’s standalone net profit rose 55% (YoY) at Rs.920 crore on a 39% rise in NII at 2665 crore.
A subsidiary of Bajaj Finserv which holds 54.99% stake has good asset quality too. Its Gross NPA and Net NPA as of 30 September 2018 stood at 1.49% v/s 1.39% (QoQ) and 0.53% v/s 0.44% respectively. Provisioning coverage ratio stood at 65% and Standard assets provisioning at end of Q2FY19 was 86 bps as per ECL (stage 1 & 2) provisioning in Ind AS versus 40 bps as per RBI prudential norms. Total slippages during the quarter went up from Rs.379 crore to Rs.483 crore (QoQ).
Capital adequacy ratio, as of 30th September 2018 was 22.13% against regulatory norms of 15%. Tier I capital was 17.17% as against regulatory requirement of 10%. Company has always maintained its Tier I Capital above 14%
Brokerage houses have given this performance a big thumbs up and that is partly the reason why the stock price has surged so much today.