AUM under moratorium for Bajaj Finance reduces to 15.5% in Q1 of FY21

Firm may need to make additional provisioning due to covid-19 to further strengthen its balance sheet. In Q4FY20, it made provisions of Rs 1,954 crore, of which Rs 900 crore was set aside for covid-re

In its quarterly update, Bajaj Finance has said, its asset under management (AUM) under moratorium has reduced to 15.5 per cent at the end of June quarter of FY21 from 27 per cent at the end of April 30. But it may need to make additional provisioning due to covid-19 to further strengthen its balance sheet. In Q4FY20, it made provisions of Rs 1,954 crore, of which Rs 900 crore was set aside for covid-related stress.

New loans booked by the financier plummeted 76.3 per cent to 1.7 million in Q1FY20 compared to 7.3 million in Q1FY20. While the asset under management grew 7 per cent year on year to Rs 1.38 trillion, sequentially AUM of the financier dropped six per cent from Rs 1.47 trillion at the end of March quarter (Q4FY20).

Customer franchise of the company as of June quarter stood at 43 million, as the company acquired only 0.5 million new customers during the quarter. At the end of June quarter in FY20, the customer franchise of the company stood at 36.9 million. As of March quarter in FY20, the customer franchise stood at 42.60 million.

The deposits franchise of the company grew 33 per cent year on year to Rs 20,000 crore at the end of Q1FY20, while it was Rs 15,084 crore in Q1FY20. At the end of March quarter (Q4FY20), the deposit franchise of the financier stood at 21,427 crore.

The company has reported a capital adequacy ratio of 26.4 per cent as of June 30,2020 and has surplus liquidity to the tune of Rs 17,600 crore as of June quarter. Capital adequacy at the end of March quarter was 25 per cent.