The NBFC's consolidated net profit tumbled 20% to Rs 962.32 crore in Q1 June 2020 (Q1FY21) from Rs 1195.25 crore in Q1 June 2019 (Q1FY20).
Total income jumped 14.5% to Rs 6649.74 crore in Q1FY21 as against Rs 5807.76 crore in the same period last year. Profit before tax (PBT) stood at Rs 1309.69 crore in Q1FY21, falling 30% from Rs 1851.42 crore in Q1FY20. Total tax expense fell 47% year on year to Rs 347 crore in Q1 June 2020. The result was announced during market hours today, 21 July 2020.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.
The NBFC's business operations in Q1FY21 were considerably impacted due to COVID-19 pandemic and the consequent lockdowns which remained for most of Q1FY21. It has resulted in significantly lower business acquisition and constraints on recovery of overdues from customers.
The firm said it restarted its urban B2B, rural B2B, auto finance, gold loans and loan against securities businesses from 10 May 2020 with stringent loan to value (LTV) and underwriting norms and focus on existing customers. The company restarted its home loans and credit card distribution businesses from June 2020. It deferred restart of other businesses viz. loan against property, SME, urban B2C, rural B2C and commercial businesses to July 2020 due to extension of moratorium.
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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New loans booked during Q1FY21 declined by 76% to 1.75 million from 7.27 million in Q1FY20. Customer franchise as of 30 June 2020 increased by 16% to 42.95 million from 36.94 million as of 30 June 2019. Consolidated assets under management (AUM) as of 30 June 2020 rose 7% to Rs 138,055 crore from Rs 128,898 in 30 June 2019.
Gross NPA and Net NPA as of 30 June 2020 stood at 1.40% and 0.50% respectively, as against 1.60% and 0.64% as of 30 June 2019. The provisioning coverage ratio as of 30 June 2020 was 65%. Standard assets provisioning (ECL stage 1 and 2) stood at 273 bps including contingency provision for COVID-19 and 101 bps excluding contingency provision.
The company said it continues to remain very well capitalised with CRAR of 26.40% as at 30 June 2020. Its liquidity surplus as of 20 July 2020 was approximately Rs 20,590 crore.
Shares of Bajaj Finance were up 1.43% at Rs 3490.65.
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
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