Bajaj Finance investors feel heat of 2nd Covid wave, stock falls over 4%

The NBFC anticipates Rs 1,100 cr- Rs 1,300 cr increase in credit costs and estimates both gross NPAand net NPA will be higher through the first two quarters of FY22

Bajaj Finance (BAF), one of the largest and most diversified of NBFCs, has produced a mid-quarter update that takes the second Covid wave into account. The data and projections are interesting, not only for the company but also for the NBFC industry in general, given the breadth of Bajaj’s footprint.

The company says it will see between Rs 4,000 crore–Rs 5,000 crore reduction in FY22 AUM due to the lockdown. April was bad, May was worse and June is expected to be somewhat better as lockdowns ease. It anticipates Rs 1,100 crore–Rs 1,300 crore increase in credit costs and estimates