Mumbai: The Covid impact on Indian corporate was yet again witnessed in the performance of major lending firm Bajaj Finance. On Tuesday, the firm reported net profit of Rs 948 crores, down by 19 percent owing to the pandemic crisis. In the corresponding quarter of the last fiscal, Bajaj Finance reported profit of Rs 1,176 crore.
Surprisingly, total income in the reported quarter rose to Rs 7,232.83 crore from Rs 5,298.01 crore in the year-ago period.
The company has made a contingency provision of Rs 900 crore with regard to COVID-19, it said.
In the current quarter, the company reported a loss of 10 productive days resulting in lower acquisition of nearly 10 lakh loan accounts and lower AUM (Assets under Management) of approximately Rs 4,500 crore.
Loan losses and provisions (expected credit loss) for Q4 FY20 were Rs 1,954 crore as against Rs 409 crore in Q4 FY19.
The company is well capitalised with capital to risk (weighted) assets ratio (CRAR) of 25.01 per cent as on March 31. It remains one of the most capitalised among large non-banking finance companies in India.
The company has overall liquidity surplus of Rs 15,725 crore on consolidated basis. On May 15, it was Rs 20,900 crore.
During the quarter, the company took an accelerated charge of Rs 390 crore for two identified large accounts, an additional provision of Rs 129 crore on account of recalibration of its ECL model and a contingency provision of Rs 900 crore for Covid-19.
Adjusted for these additional provisions of Rs 1,419 crore, loan losses and provisions for Q4 FY20 was Rs 535 crore.
The lending firm saw gross net performing assets rise marginally to 1.61 percent from 1.54 percent a year ago while net NPAs have incresed to 0.65 percent from 0.63 percent. The marginal bump could be attributed to the moratorium that financial and lending firms have to offer their customers. These are in sync with RBI's regulatory package dated March 27, 2020.
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