Bajaj Finance slapped with ₹2 cr fine by IRDAI

NBFC major Bajaj Finance has been fined ₹2 crore by the Insurance Regulatory and Development Authority of India (IRDAI) for breaching regulatory norms, according to a filing by the Pune-based company on July 16. The announcement was made after market hours. The insurance regulator conducted an onsite inspection of Bajaj Finance Limited from March 3 to March 5, 2021, covering the fiscal years 2018 to 2020, the company said in a BSE filing.

The company received a show-cause notice (SCN) from the IRDAI dated March14, 2024, after the IRDAI provided an opportunity to the company for a personal hearing and additional submissions.

A penalty of ₹1 crore was imposed due to discrepancies in reporting commissions and professional fees to the Authority, violating the IRDA regulations. A penalty of additional ₹1 crore was imposed for not properly maintaining customer documentation records, again violating the IRDAI regulations.

Bajaj Finance witnessed a consolidated net profit of 21% year-on-year (YoY) increase in Q4 FY24, reaching ₹3,825 crore.

In Q4 FY24, Bajaj Finance recorded its consolidated net profit rise by 21% year-on-year (YoY), reaching ₹3,825 crore. The company's consolidated net interest income (NII) also saw growth, rising by 28% YoY to ₹8,013 crore.

Despite facing challenges from the RBI restrictions, the NBFC managed to book 7.87 million new loans in Q4 FY24, marking a 4% increase from the previous year's 7.56 million. However, this figure was lower by 0.80 million loans due to regulatory constraints.

Revenue from operations for Q4 FY24 surged by 31.34% to ₹14,926.21 crore compared to ₹11,364.01 crore in the corresponding period last year. Similarly, the company's total income grew by 31.35% to ₹14,931.98 crore from ₹11,367.54 crore in the same period.

For the entire fiscal year, Bajaj Finance’s profit increased by 26% to ₹14,451 crore, up from ₹11,508 crore in FY23. The NII for FY24 rose by 29% to ₹29,582 crore compared to ₹22,989 crore in FY23.

As of March 31, 2024, the company's net non-performing assets (NPA) stood at 0.37%, slightly up from 0.34% recorded on March 31, 2023. The NBFC major’s Assets Under Management (AUM) rose by 34% from ₹2,47,379 crore in the previous year to ₹3,30,615 crore as of March, 2024, with an increase of ₹19,647 crore in Q4 FY24 alone.