Bajaj Finance Q2 net profit plummets 36% to Rs 965 crore

Bajaj Finance Ltd (BFL) on Wednesday reported a 36 per cent drop in its consolidated web revenue at Rs 965 crore for the second quarter of the 2020-21 fiscal 12 months.

The non-banking finance firm had posted a web revenue of Rs 1,506 crore within the July-September quarter a 12 months in the past.

Its complete consolidated earnings grew Three per cent to Rs 6,523 crore throughout the July-September interval of 2020-21 as towards Rs 6,323 crore in the identical quarter a 12 months earlier, BFL mentioned in a regulatory submitting.

Net curiosity earnings was up Four per cent at Rs 4,165 crore as towards Rs 4,000 crore.

The Pune-headquartered firm mentioned new loans booked throughout the second quarter of this fiscal dropped 44 per cent to 36.2 lakh as towards 64.7 lakh within the corresponding interval a 12 months in the past.

Customer franchise as of September 30, 2020 stood at 4.41 crore as towards 3.87 crore a 12 months earlier, it added.

Its consolidated property beneath administration (AUM) as of September 30, 2020 grew 1 per cent to Rs 1,37,090 crore from Rs 1,35,533 crore. On standalone foundation, the AUM was Rs 104,986 crore as towards Rs 110,946 crore as of September 30, 2019.

The consolidated outcomes of the BFL included outcomes of its wholly-owned subsidiaries Bajaj Housing Finance Ltd (BHFL) and Bajaj Financial Securities Ltd (BFinsec).

The firm’s liquidity surplus stood at Rs 22,414 crore on the finish of the second quarter of 2020-21 towards Rs 8,107 crore a 12 months in the past, it mentioned.

The firm’s liquidity place stays very sturdy, the corporate mentioned.

Bajaj Finance mentioned its complete working bills to web curiosity earnings throughout the quarter was 27.Eight per cent as towards 34.6 per cent a 12 months in the past.

“With the onset of Covid-19 pandemic, the company had taken significant measures to reduce operating expenses in April 2020. As a result, total operating expenses for Q2FY21 was down by 16 per cent to Rs 1,160 crore from Rs 1,384 crore,” it mentioned.

The mortgage losses and provisions for the September quarter have been Rs 1,700 crore as towards Rs 594 crore.

“Consequent to the ongoing pandemic, the company has further increased its provisions on stage 1 and 2 assets by Rs 1,370 crore to Rs 5,099 crore as of September 30, 2020 as against Rs 3,729 crore as of June 2020. The company has strong pre-provisioning profitability to manage loan losses arising out of Covid-19,” BFL mentioned.

Shares of Bajaj Finance ended at Rs 3,253 apiece on the BSE, down 0.28 per cent from their earlier shut.