Bajaj Finance Q2 profit declines 36% YoY to Rs 965 crore
Published On: Wednesday, October 21, 2020 | By: Team KnowMyStock
Shares of Bajaj Finance was down 0.89 per cent at Rs 3,233 on Wednesday after the Company posted huge 35.94 per cent year-on-year (YoY) drop in net profit at Rs 964.88 crore for the quarter ended September 30 as the lender almost tripled provisions for bad loans as the coronavirus pandemic impacted demand for credit and borrowers’ ability to repay. Analysts in an ET NOW had projected the figure at Rs 1,037 crore. The Company had reported Rs 1,506 crore in the same period last year. Loan losses and provisions for the second quarter ended September 30, 2020, was ₹1,700 crore as against ₹594 crores in Q2 FY20. Consolidated assets under management rose to ₹137,090 crores as compared to ₹135,533 crores in the year-ago period.Net interest income of the NBFC increased 4 per cent YoY to Rs 4,165 crore which was better than the CNBC-TV18 poll estimates of Rs 3,711.7 crore. Total operating expenses for Q2 FY21 was down by 16% to ₹1,160 crores from ₹1,384 crores.
During the quarter, as a measure of prudence, the company said it had reversed capitalised interest of Rs 142 crore. The total amount of interest income reversed in H1 FY21 was Rs 361 crore.The company has strong pre-provisioning profitability to manage loan losses arising out of Covid-19,” Bajaj Finance said. The provisioning coverage ratio as of September 2020 was 64 percent against 65 percent in June quarter.
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