Bajaj Finance Ltd.‘s net profit on a standalone basis rose in the second quarter as core income improved.

The non-bank lender’s net profit increased 49% year-on-year to Rs 1,306 crore in the three months ended September, according to its exchange filing.

On a consolidated basis, net profit stood at Rs 1,481 crore, up 53% year-on-year. The consolidated business included results for Bajaj Housing Finance Ltd. and Bajaj Financial Securities Ltd.

Its standalone net interest income was up 26% over the preceding year to Rs 4,920 crore. Consolidated NII rose 28% to Rs 5,335 crore.

Assets under management for the lender improved to Rs 1.23 lakh crore, up 17% over a year ago. On a consolidated basis, AUM rose 22% year-on-year to Rs 1.67 lakh crore.

The lender said growth and risk in the market had improved in the second quarter, giving it confidence about the rest of the year.

The consolidated gross NPA ratio stood at 2.45% against 2.96% in the first quarter. Similarly, net NPA ratio improved by 36 basis points sequentially to 1.1%.

• Loan losses and provisions for the quarter were at Rs 1,300 crore. Total provisions taken in the first half of the fiscal is Rs 3,051 crore, the company said.

• Stage 2 assets which are overdue by 60-90 days also reduced during the quarter to Rs 5,962 crore vs Rs 7,425 crore as of June.

• Non overdue one-time restructuring book as of September increased 17.5% sequentially to Rs 1,512 crore.

• In Q2, the company restructured Rs 426 crore in loans. These are classified as stage-2 assets and Bajaj Finance held a 19% provision coverage ratio for this book.

Among key segments, Bajaj Finance saw growth revive across some while others remained relatively weak.

• Bajaj Housing Finance portfolio grew 32% year-on-year, with home loans up 29%. The consolidated mortgage portfolio grew 18%.

• The consumer B2C business grew 19% year-on-year.

• Sales finance and rural sales finance businesses grew 59% and 80% respectively.

• The commercial lending business grew 50% over preceding year.

• The auto finance business contracted by 15% year-on-year.