Bajaj Finance may go for additional accelerated provisioning in Q1

By: |
July 7, 2020 9:11 AM

Bajaj Finance on Monday said it may consider additional accelerated provisioning in Q1FY21 for Covid-19 as well further strengthening its balance sheet. 

bajaj finance, bajaj finance Q1FY20, AUM, IL&FS, CRARThe company also said in an exchange filing that new loans booked during Q1FY21 stood at 1.7 million, down 76.7% from 7.3 million in Q1FY20.

Bajaj Finance on Monday said it may consider additional accelerated provisioning in Q1FY21 for Covid-19 as well further strengthening its balance sheet. The company also said in an exchange filing that new loans booked during Q1FY21 stood at 1.7 million, down 76.7% from 7.3 million in Q1FY20.

In Q4FY20, the consumer-finance leader had made a Rs 1,419-crore one-time additional provision for Covid, which consisted of three elements. One was an annual expected credit loss (ECL) recalibration of Rs 129 crore and the second was Rs 900 crore of general Covid contingency provision. The company had also decided to charge off two large identified stressed accounts, understood to be Karvy and IL&FS.

Assets under management (AUM) stood at approximately Rs 1.38 lakh crore as on June 30, 2020, compared with Rs 1.29 lakh crore a year ago. “The company continues to remain well capitalised with capital adequacy ratio (CRAR) of approximately 26.4% as of 30 June 2020,” it said, adding that its consolidated liquidity surplus was approximately Rs 17,600 crore as on June 30, 2020. Its deposit book stood at approximately Rs 20,000 crore at the end of Q1, up from Rs 15,084 crore at the end of Q1FY20.

AUM under moratorium has reduced to approximately 15.5% as on June 30 from 27% as on April 30.

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