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  1. Bajaj Fin ties up with Flipkart for online financing

Bajaj Fin ties up with Flipkart for online financing

Bajaj Finance, while virtually exiting the infrastructure lending segment by provisioning for the last of these loans, has embraced online real time finance through a tie-up with e-tailer Flipkart.

By: | Pune | Published: May 25, 2016 7:46 AM
Bajaj Finance, while virtually exiting the infrastructure lending segment by provisioning for the last of these loans, has embraced online real time finance through a tie-up with e-tailer Flipkart. (Reuters) Bajaj Finance, while virtually exiting the infrastructure lending segment by provisioning for the last of these loans, has embraced online real time finance through a tie-up with e-tailer Flipkart. (Reuters)

Bajaj Finance, while virtually exiting the infrastructure lending segment by provisioning for the last of these loans, has embraced online real time finance through a tie-up with e-tailer Flipkart.

Bajaj Finance had to make additional provisioning on two accounts in the infrastructure lending portfolio during Q4FY16, but still managed to grow the profit after tax at 36.4% to R315 crore.

Total income during the quarter increased 35% to R1,957 crore.

Loan losses and provisions during Q4FY16 grew 37% to R156 crore, against R114 crore in the year-ago period. The company made an additional provision of R43.9 crore in one of its infrastructure lending accounts. The profit before tax during the quarter was up 42% to R489 crore.

Rajeev Jain, managing director, said these accounts were still standard assets and were not NPAs, but given the nervousness surrounding steel and power companies the company was making these provisions.

Jain said the profit would have been substantially higher at 52% but for these provisions. “We have paused on infrastructure and infrastructure-related lending in 2013. We took a Rs 30 crore hit last year and Rs 75 crore this year.  But with this provisioning, the balance sheet has been cleaned…”

The company has started lending online and gone live with Flikpart. This was launched in March and will be initially available to Bajaj Finance customers, Jain said.

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