Bajaj Finance Q2: Due to Covid 19, consumer sentiments have not been normalized yet. Which has had an impact on the quarterly results of Lorjcap NBFC company Bajaj Finance. Bajaj Finance’s profit fell 36 per cent to Rs 965 crore in the second quarter of the current financial year. Bajaj Finance made a profit of Rs 1506 crore in the same quarter last year. While the number of new loans has come down in the September quarter, there has also been an increase in the provisioning of the company, which has had an impact on financial performance.
4% growth in NII
Bajaj Finance’s net interest income grew 4 per cent year-on-year to Rs 4,165 crore as against Rs 4000 crore in the year-ago quarter. However, in the September quarter, provisioning increased from 594 crores to 1,700 crores on an annual basis.
Asset quality improved
Gross NPA has declined from 1.4 per cent to 1.03 per cent on a quarterly basis. It was 1.61 percent in the same quarter a year ago. At the same time, net NPA has come down from 0.5 per cent to 0.37 per cent on a quarterly basis. It was 0.65 per cent in the same quarter a year ago.
Number of new loans decreased
The September quarter data of Bajaj Finance has seen a clear impact of the corona virus epidemic. Bajaj Finance has given 36 lakh new loans in the September quarter. But compared to 64.7 lakh in the same quarter a year ago, it is close to half. Business volume in terms of loan disbursement and new customers are at 50–60 per cent level on an annual basis. Loan disburses have reduced by 45 per cent on an annual basis. Bajaj Finance’s new loan book stood at 17 lakh during the April to June quarter.
At the same time, the asset under management of Bajaj Finance has increased by only 1.15 percent in this quarter and has increased to 137,090 crores. It was 135,533 crore in the same quarter a year ago. Consumer B2C and SME lending is sluggish. While there has been a 9 per cent growth in the liquidity on the balance sheet on a quarterly basis, the deposit book has grown 5 per cent on a quarterly basis to 21600 crores. Bajaj Finance’s AUM growth was just 7 per cent in the June quarter, the slowest growth in 10 years.
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