Bajaj Finance Q3 net profit falls 29%

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January 21, 2021 1:20 AM

New loans booked during the quarter was lower at 6.04 million, against 7.67 million in Q3FY20. Assets under management as of December went up 1% to Rs 1, 43,550 crore.

The company provided Rs 800 crore as of December 2020 for COVID-19 related stress. “If recoveries are better in FY22, we may experience lower net loan loss to average assets,” Jain said.The company provided Rs 800 crore as of December 2020 for COVID-19 related stress. “If recoveries are better in FY22, we may experience lower net loan loss to average assets,” Jain said.

Bajaj Finance on Wednesday reported a 29% year-on-year fall in its net profit for the quarter ended December 31 to Rs 1,146 crore. The fall in profit was driven by a decline in net interest income by Rs 239 crore to Rs 4,296 crore, lower business volume and front-loading of loan losses and provisions due to COVID-19 related stress.

New loans booked during the quarter was lower at 6.04 million, against 7.67 million in Q3FY20. Assets under management as of December went up 1% to Rs 1, 43,550 crore.

The net interest income for Q3FY21 declined 5% to Rs 4,296 crore, against Rs 4,535 crore in Q3FY20, because of interest reversal of Rs 450 crore versus Rs 83 crore in Q3FY20 and cost of surplus liquidity of Rs 213 crore against Rs 83 crore. During the quarter, the company did one-time principal write-off of Rs 1,970 crore on account of COVID-19 related stress, MD Rajeev Jain said at an investor call.

The company provided Rs 800 crore as of December 2020 for COVID-19 related stress. “If recoveries are better in FY22, we may experience lower net loan loss to average assets,” Jain said.

Bajaj Finance’s gross non performing assets (NPA) stood at 0.55% and net NPA was at 0.19% as on December 31, 2020, compared with 1.61% and 0.70%, respectively, as of December 31, 2019. The provisioning coverage ratio as of December 31, 2020 was 65%.

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