Bajaj Finance shares fall 5% as loans booked in Q2 decline 45%1 min read . Updated: 07 Oct 2020, 11:56 AM IST
- The company has said it will continue to accelerate its provisioning for covid-19 in Q2 FY21 as well to further strengthen its balance sheet
Shares of Bajaj Finance fell as much as 5.42%, after its new loans booked during Q2 FY21 declined 44.6% year-on-year to 3.6 million. At 11.25 am, the stock was trading at Rs3,320, down 4.44% from its previous close, while the benchmark index, Sensex, gained 0.43% to 39,745.34.
"The company will continue to accelerate its provisioning for covid-19 in Q2 FY21 as well to further strengthen its balance sheet," the lender said in a BSE filing made after market hours on Tuesday.
The company's consolidated liquidity surplus stood at approximately Rs22,300 crore as of 30 September, 2020, and added that its liquidity position remains very strong.
The NBFC said it continues to remain well capitalized with capital adequacy ratio (CAR) of approximately 26.5% as of 30 September, 2020, while maintaining highest ever liquidity buffer.
Deposit book increased 22.5% to Rs21,600 crore in Q2 September 2020 compared with Rs17,633 crore in Q2 September 2019.
Customer franchise as of 30 September, 2020, stood at 44.1 million, up by 13.95% from 38.7 million as of 30 September, 2019. During the quarter , the company acquired 1.2 million new customers.
Assets under management (AUM) stood at approximately Rs1.37 trillion at the end of the September 2020 quarter compared with Rs1.36 trillion reported in the same period last year, registering a year-on-year growth of 1.3%.
From the beginning of the year, Bajaj Finance lost 21% against a fall of 3% in the benchmark index, Sensex.
The NBFC's consolidated net profit tumbled 20% to Rs962.32 crore in Q1 June 2020 (Q1FY21) from Rs1,195.25 crore in Q1 June 2019 (Q1FY20). Total income jumped 14.5% to Rs6,649.74 crore in Q1FY21 as against Rs5,807.76 crore in the same period last year.
Bajaj Finance is engaged in lending and allied activities. It focuses on consumer lending, small and medium-sized enterprises (SME) lending, rural lending, fixed deposits and value-added services.