Bajaj Finance fell 3.85% to Rs 3136.5 after the NBFC's consolidated net profit slipped 36% to Rs 965 crore on 3% increase in total income to Rs 6523 crore in Q2 September 2020 over Q2 September 2019.
Profit before tax (PBT) fell 35% to Rs 1305.47 crore in Q2 September 2020 over Q2 September 2019. Total tax expense fell 34% to Rs 340.59 crore in Q2 September 2020 over Q2 September 2019. The result was announced during market hours today, 21 October 2020.
During the quarter, the company made an expected credit loss (ECL) provision on stage 1 and 2 assets of Rs 1,370 crore taking the overall ECL provision on stage 1 and 2 assets to Rs 5,099 crore as of 30 September 2020 as against Rs 3,729 crore as or 30 June 2020. The ECL provision as a percentage of stage 1 and 2 assets is 3.69% as of 30 September 2020 as against 2.73% as of 30 June 2020 and 0.91% as of 30 September 2019.
Net Interest Income rose 4% year-on-year to Rs 4,165 crore in Q2 September 2020. During the quarter, as a measure of prudence, the company said it has reversed capitalised interest of Rs 142 crore.
Bajaj Finance said new loans booked during Q2 September 2020 were 3.62 million as against 6.47 million in Q2 September 2019. The company's asset under management grew 1% to Rs 137,090 crore in Q2 September 2020 from Rs 135,533 crore in Q2 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. The NBFC's capital adequacy ratio stood at 26.64% as of 30 September 2020. The company said its liquidity position remains very strong.
Gross non-performing asset (NPA) and Net NPA as of 30 September 2020 stood at 1.03% and 0.37% respectively, as against 1.61% and 0.65% as of 30 September 2019. The provisioning coverage ratio as of 30 September 2020 was 64%.
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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