Bajaj Finance consolidated Q2 FY21 profit declines by 36 pct on-year at Rs 965 cr; see other highlights here!

Bajaj Finance Limited today reported a 36 per cent year-on-year (YOY) drop in its net profit for the quarter ended 31 September at Rs 965 cr against Rs 1506 cr reported over the same period in Q2 FY20. The overall consolidated asset under management (AUM) for the reporting quarter stood at Rs 137,090 cr versus 135,533 cr in Q2 FY20.  

See highlights of the result here:  

• New loans booked during Q2 FY21 were 3.62 million as against 6.47 million in Q2 FY20.  
• AUM as of 30 September 2020 grew by 1 per cent to Rs 137,090 crore from Rs 135,533 crore as of 30 September 2019. 
• Customer franchise as of 30 September 2020 stood at 44.11 million as against 38.70 million as of 30 September 2019.  
• Liquidity surplus as of 30 September 2020 stood at Rs 22,414 crore as against Rs 8,107 crore as of 30 September 2019.  
• Net Interest Income for Q2 FY21 was up by 4 per cent to Rs 4,165 crore from Rs 4,000 crore in Q2 FY20.
• Total operating expenses to net interest income for Q2 FY21 was 27.8 per cent as against 34.6 per cent in Q2 FY20.  

Gross NPA and Net NPA as of 30 September 2020 stood at 1.03 per cent and 0.37 per cent respectively, as against 1.61 per cent and 0.65 per cnet as of 30 September 2019. The provisioning coverage ratio as of 30 September 2020 was 64 per cent, the company said in its filing.  

Provisioning coverage on stage 1 and 2 assets was 369 bps as of 30 September 2020 versus 273 bps as of 30 June 2020 and as against 90-100 bps during pre-pandemic s ituation.  

A per the direction of the Supreme Court, the Company did not classify any accounts which were not NPA as of 31 August 2020, as per RBI norms, as NPA after 31 August 2020. 

“However, if the Company had classified borrower accounts as NPA after 31 August 2020, the Company's Gross NPA and Net NPA ratio would have been 1.34% and 0.56% respectively,” it said. 

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 Capital adequacy ratio (including Tier-II capital) as of 30 September 2020 stood at 26.64 per cent. The Tier-I capital stood at 23.01 per cent.