Bajaj Finance Q4 PAT rises 42% to Rs 1,347 cr

The NBFC's consolidated net profit jumped 42% to Rs 1,347 crore on 5% decline in total income to Rs 6,855 crore in Q4 FY21 over Q4 FY20.

New loans booked during Q4 FY21 stood at 5.47 million, down by 9% over 6.03 million in Q4 FY20. Customer franchise as of 31 March 2021 was at 48.57 million compared with 42.60 million as of 31 March 2020. Bajaj Finance acquired 2.26 million new customers in Q4 FY21 compared with 1.85 million in Q4 FY20.

Net Interest Income (NII) for Q4 FY21 stood at Rs 4,659 crore as against Rs 4,684 crore in Q4 FY20. Interest income reversal for the quarter was at Rs 298 crore as compared to Rs 122 crore in Q4 FY20. Total operating expenses to net interest income for Q4 FY21 stood at 34.5% over 31% in Q4 FY20.

Loan losses and provisions for Q4 FY21 was at Rs 1,231 crore as against Rs 1,954 crore in Q4 FY20. During the quarter, the company has done accelerated write offs of Rs 1,530 crore of principal outstanding on account of COVID-19 related stress and advancement of its write off policy. The company holds a management overlay and macro provision of Rs 840 crore as of 31 March 2021.

Gross NPA and Net NPA as of 31 March 2021 stood at 1.79% and 0.75% respectively as against 1.61% and 0.65% as of 31 March 2020. The company has provisioning coverage ratio of 58% on Stage III assets and 181 bps on stage I and II assets as of 31 March 2021.

On a consolidated basis, the company's net profit fell 16% to 4420 crore on 1% increase in total income to Rs 26,683 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20).

Loan losses and provisions for FY21 was Rs 5,969 crore as against Rs 3,929 crore in FY20. During the year, the company has done accelerated write offs of Rs 3,500 crore of principal outstanding on account of COVID-19 related stress and advancement of its write off policy. The company holds a management overlay and macro provision of Rs 840 crore as of 31 March 2021.

Assets under management (AUM) as of 31 March 2021 grew by 4% to Rs 152,947 crore from Rs 147,153 crore as of 31 March 2020.

Net Interest Income (NII) for FY21 was Rs 17,269 crore as against Rs 16,912 crore in FY20. Interest income reversal for the year was Rs 1,270 crore compared with Rs 329 crore in FY20.

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.

Shares of Bajaj Finance advanced 3.02% to end at Rs 4,873.45 on BSE. The scrip hit a high of Rs 4,747 and a low of Rs 4,931.35 during the day.

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