Bajaj Finance declines over 1% as Q4 profit dips 19% YoY; recovers later

The NBFC lost 10 productive days in Q4FY20 due to the coronavirus pandemic and the consequent lockdown. This resulted in lower acquisition of nearly 1 million loan accounts.

Shares of Bajaj Finance dipped 1.6 per cent to Rs 1,935.45 in the intra-day trade on the BSE on Wednesday after the non-bank finance company's (NBFC's) net profit contracted for the first time in six years, down 19.4 per cent year-on-year (YoY) to Rs 948 crore, on the back of higher provisioning. Core profit before tax (PBT; before provisions) growth was, however, strong at 45 per cent YoY. Adjusted for Covid-19 provisions, PAT was up 38 per cent YoY. 

The stock, however, pared the loss and bounced 4.5 per cent off day's low to hit an intra-day high of Rs 2,023.50