Shares of the NBFC tumbled 4.16% to Rs 3298.10 after the company said Rahul Bajaj has decided to step down from his position as chairman at the end of this month.
Rahul Bajaj, non-executive chairman of Bajaj Finance, having been at the helm of the company since its inception in 1987 and the group for over five decades, as part of succession planning, has decided to demit the office as chairman of the board from close of business hours on 31 July 2020. He would, however, continue to serve the company as a non-executive non independent director.
The board of directors, at its meeting held today, has approved the appointment of Sanjiv Bajaj, currently the vice chairman of the company, as non-executive chairman of the company with effect from 1 August 2020, in place of Rahul Bajaj.
Bajaj Finance is engaged in lending and allied activities. It focuses on consumer lending, small and medium-sized enterprises (SME) lending, commercial lending, rural lending, fixed deposits and value-added services.
The non-banking financial company's (NBFC's) consolidated net profit declined 20% to Rs 962.32 crore in Q1 June 2020 from Rs 1195.25 crore in Q1 June 2019. Total income jumped 14.5% to Rs 6649.74 crore in Q1FY21 as against Rs 5807.76 crore in the same period last year. Net interest income for Q1FY21 was up by 12% to Rs 4,152 crore from Rs 3,694 crore in Q1FY20. Total operating expenses to net interest income for Q1FY21 was 27.9% against 35% in Q1FY20.
Loan losses and provisions for Q1FY21 was Rs 1,686 crore as against Rs 551 crore in Q1FY20. During the quarter, Bajaj Finance made an additional contingency provision of Rs 1,450 crore for COVID-19 taking the overall contingency provision for COVID-19 to Rs 2,350 crore as of 30 June 2020.
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