Mumbai: Consumer durables lender Bajaj Finance Ltd on Tuesday reported a 19.4% year-on-year (y-o-y) decline in consolidated net profit to ₹948.1 crore owing to covid-19 provisions of ₹900 crore.
Bajaj Finance’s net interest income (NII) surged 38% y-o-y to ₹4,684 crore in the March quarter. The other large component of its revenues was in the form of fees and other income of ₹929 crore, up 45% from the same period last year.
The consolidated results of Bajaj Finance include the earnings of its wholly-owned subsidiaries -- Bajaj Housing Finance Ltd (BHFL) and Bajaj Financial Securities Ltd (BFinsec).
The non-banking financial company (NBFC) said due to the covid-19 pandemic and the consequent lockdown, the company lost 10 productive days in Q4 resulting in lower acquisition of nearly 1 million loan accounts and lower asset under management (AUM) of approximately ₹4,500 crore.
“Adjusted for the impact of lockdown, AUM growth would have been 31%," it said in a statement to the stock exchanges. The total AUM of the company grew 27% to ₹1.47 trillion as on 31 March on a consolidated basis. The book of Bajaj Housing Finance Ltd stood at ₹32,705 crore in the same period and is included in the consolidated numbers.
Its new loans booked grew by 3% y-o-y to 6.03 million in Q4. Among the fastest-growing segments in this quarter were rural lending at 44%, mortgages and consumer loans (business to consumer) at 36% each. Its total deposits stood at ₹21,427 crore, up 62% from the same period last year.
Bajaj Finance’s loan losses and provisions more than quadrupled on a year-on-year (y-o-y) basis to ₹1,865 crore. During the quarter, the lender took accelerated charge of ₹390 crore for two large accounts, an additional provision of ₹123 crore on account of recalibration of its expected credit loss (ECL) model.
Bajaj Finance said it is well-capitalised with a capital adequacy ratio of 25.01% as on 31 March. “The company's liquidity position remains very strong with overall liquidity surplus of approximately ₹15,725 crore as of 31 March, 2020 on consolidated basis. The company's liquidity surplus as on 15 May was approximately ₹20,900 crore," it said.
The non-bank financier also said it has offered a three-month repayment mortarium to its customers based on requests as well as on a suo-moto basis.
Its gross non-performing asset (NPA) and net NPA ratio stood at 1.61% and 0.65% as on 31 March, respectively and has a provisioning coverage ratio of 60%.
“The company, at this juncture, is focused on capital preservation, balance sheet protection and operating expenses management. Given it's healthy capital adequacy, strong liquidity position, low gross NPA and net NPA, access to retail deposits, large customer franchise, diversified portfolio mix, granular geographical distribution and strong risk metrics, the company is confident of successfully dealing with challenges posed by covid-19," it said in the statement.