Bajaj Finance gains after providing business update

Bajaj Finance rose 1.35% to Rs 3,150.90 after the company's asset under management (AUM) under moratorium reduced to about 15.5% as of 30 June from 27% as of end April.

Bajaj Finance after market hours yesterday provided information on a consolidated basis with respect to the quarter ended on 30 June 2020.

The company's customer franchise stood at 43 million as of 30 June 2020, up by 16.5% or 0.5 million from 36.9 million as on 30 June 2019. New loans booked during Q1 FY21 were down by 76.7% to 1.7 million as compared to 7.3 million in Q1 FY20.

Assets under management (AUM) increased by 7.8% to approximately Rs 1.38 lakh crore as of 30 June 2020 as compared to approximately Rs 1.28 lakh crore as of 30 June 2019.

The company continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 26.4% as of 30 June 2020, the NBFC said. With consolidated liquidity surplus of approximately Rs 17,600 crore as of 30 June 2020, the company's liquidity position remains very strong, it added.

Bajaj Finance's deposit book grew 32.6% to Rs 20,000 crore in Q1 FY21 from Rs 15,084 crore in Q1 FY20. The company said that it may consider additional accelerated provisioning for COVID-19 in Q1 FY21 as well to further strengthen its balance sheet.

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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