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Mumbai: The largest non-bank lender Bajaj Finance (BFL) on Tuesday said that it can mitigate any disruption caused by the second wave of covid infections in the first quarter. The management clarified that despite the disruptions, the company remains open for business across geographies in line with local administration advisories.

“As a high-frequency indicator, in the last 7-10 days, the company has continued to originate 50-55% of daily volumes in B2B business, 80-85% in B2C and SME businesses and 40-50% in mortgages. We are confident that second covid will not have any major impact.," said Rajeev Jain, managing director at Bajaj Finance in an earnings call with analysts.

Bajaj Finance had reported a 42% jump in consolidated net profit owing to improved asset quality. The company’s net profit stood at 1,347 crore at the end of March compared to 948 crore in the corresponding period a year ago

Gross non-performing assets as a percentage of total loans declined to 1.79% as against 2.87% in the previous quarter. Net non-performing assets as a percentage of total loans also fell to pre-covid levels of close to 0.7%, which it had earlier guided to reach by third quarter. Restructuring portfolio stood at Rs. 1739 Cr compared to Rs. 2040 crore in the previous quarter. The NBFC continues to be well provided with provision coverage ratio of 20%.

Overall, Bajaj Finance said that most businesses started disbursing 90-105% of their volume of loans from the year-ago quarter in the reported quarter, suggesting continued recovery in business momentum.

New loans booked during the fourth quarter fell to 54.7 lakh as against 60.3 lakh in the same quarter a year ago, the company said. On a consolidated basis, the company witnessed growth of over 25% in loan against securities and commercial lending during the year, while consumer B2B (business to business) and B2C (business to consumer) lending dropped 8% and 3%, respectively.

Net interest income during the quarter also dipped 1% to 4,659 crore from 4,684 crore in the corresponding quarter last year.

Bajaj Finance said its board of directors has recommended a dividend of 10 per equity share for FY21.

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