Bajaj Finance reported a 29% drop in consolidated net profit to Rs 1145.98 crore on a 5.2% fall in total income to Rs 6658.47 crore in Q3 December 2020 over Q3 December 2019.
The NBFC's profit before tax stood at Rs 1,554.51 crore in Q3 December 2020, a 28.3% decline over Rs 2170 crore posted in Q3 December 2019. Total tax expense declined 26.5% to Rs 408.53 crore in Q3 December 2020 over Q3 December 2019.Loan losses and provisions spiked by 62.7% in Q3 December 2020 to Rs 1,352 crore from Rs 831 crore reported in Q3 December 2019. During the quarter, the company said it has done a one time write-off of principal outstanding of Rs 1,970 crore and interest outstanding of Rs 365 crore on account of COVID-19 related stress. Post such write off, the company holds a management overlay of Rs 800 crore as of 31 December 2020.
On the asset quality side, gross NPA and net NPA as of 31 December 2020 stood at 0.55% and 0.19% respectively, as against 1.61% and 0.70% as of 31 December 2019. The provisioning coverage ratio as of 31 December 2020 was 65%. Capital adequacy ratio (including Tier-II capital) as of 31 December 2020 stood at 28.18%. According to Supreme Court's interim order, the company has not classified any accounts which were not NPA as of 31 August 2020, as per RBI norms, as NPA after 31 August 2020.
Net Interest Income (NII) fell 5.27% year-on-year to Rs 4,296 crore in Q3 December 2020 over Q3 December 2019. This was predominantly due to higher reversal of interest income at Rs 450 crore versus Rs 83 crore in Q3 FY20 and higher cost of liquidity surplus at Rs 213 crore versus Rs 83 crore in Q3 FY20.
The NBFC's Assets under management (AUM) fell by 1% year on year to Rs 143,550 crore as of 31 December 2020 from Rs 145,092 crore as of 31 December 2019.
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New loans booked during Q3 FY21 stood at 6.04 million as against 7.67 million in Q3 FY20. Customer franchise as of 31 December 2020 stood at 46.31 million as against 40.38 million as of 31 December 2019. The NBFC major said that it acquired 2.19 million new customers in Q3 FY21 as compared to 2.46 million in Q3 FY20.
Total operating expenses to net interest income for Q3 December 2020 was at 32.3% as against 33.8% in Q3 December 2019. The reduction was on account of lower business volumes as well as measures taken to reduce operating expenses.
Shares of Bajaj Finance rose 0.41% to Rs 4981.15. 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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