Bajaj Finance Q3 results: Net profit falls 29% to Rs 1,146 cr; provisions, bad loans rise

NEW DELHI: Bajaj Finance on Wednesday posted a 29 per cent year-on-year (YoY) drop in net profit at Rs 1,145.98 crore for the quarter ended December 30.

Net Interest Income (NII) for the quarter was Rs 4,296 crore as against Rs 4,535 crore in the year ago quarter, registering a drop of 5.27 per cent. The company said this was predominantly due to higher reversal of interest income at Rs 450 crore versus Rs 83 crore in Q3FY20 and higher cost of liquidity surplus at Rs 213 crore versus Rs 83 crore.

The consolidated results of Bajaj Finance include the results of its wholly owned subsidiaries Bajaj Housing Finance Limited (BHFL) and Bajaj Financial Securities Limited (BFinsec).

The company provided Rs 1,352 crore for loan losses and provisions, which was significantly higher than Rs 831 crore it provided in the same quarter last year. During the quarter, the company has done a one time write-off of principal outstanding amount of Rs 1,970 crore and interest outstanding of Rs 365 crore on account of Covid-19 related stress.

The company holds a management overlay provision of Rs 800 crore as of 31 December 2020 for Covid-19 related stress.

Gross NPA and net NPA stood at 0.55 per cent and 0.19 per cent respectively, as against 1.61 per cent and 0.70 per cent last year. The financial companies have been barred from declaring bad loans by the Supreme Court. Notwithstanding the order, the GNPA and net NPA ratio would have been 2.86 per cent and 1.22 per cent, respectively, Bajaj Finance said.

The provisioning coverage ratio of the company stood at 65 per cent. Provisioning coverage on stage 1 and 2 assets was 190 bps as of 31 December 2020.

The NBFC giant said new loans booked during Q3 were 6.04 million as against 7.67 million in the same quarter last year. Customer franchise stood at 46.31 million as against 40.38 million. The company acquired 2.19 million new customers in the quarter compared to 2.46 million in last year.

Assets under management (AUM) stood at Rs 1,43,550 crore as against Rs 1,45,092 crore. Liquidity surplus stood at Rs 14,347 crore as against Rs 11,384 crore.

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