Bajaj Finance says it may take more covid-19 provisions1 min read . Updated: 06 Jul 2020, 07:22 PM IST
- The company said it continues to remain well-capitalised with capital adequacy ratio of approximately 26.4% at the end of the June quarter
- In May, Bajaj Finance had said that owing to the covid-19 pandemic and the consequent lockdown, it lost 10 productive days in Q4 FY20
Consumer durables financier Bajaj Finance Ltd on Monday said it may consider additional accelerated provisioning for covid-19 in the first quarter of FY21 to further strengthen its balance sheet.
In the March quarter of FY20, Bajaj Finance had set aside ₹900 crore as provisions for covid-19, leading to a 19.4%% year-on-year (y-o-y) decline in consolidated net profit at ₹948.1 crore.
“Assets under management (AUM) under moratorium have reduced from 27% as of 30 April 2020 to approximately 15.5% as of 30 June 2020," it said.
The lender also said on Monday that that new loans booked in the first three months of FY21 declined 77% on a year-on-year (y-o-y) basis to 1.7 million. While the company is yet to declare its June quarter results, it said that assets under management (AUM) stood at approximately ₹1.38 trillion as on 30 June 2020 as compared to ₹1.28 trillion as on 30 June 2019. This is lower than its assets of ₹1.43 trillion as on 30 April.
“Customer franchise as of 30 June 2020 stood at 43 million as compared to 36.9 million as of 30 June 2019. During the quarter, the company acquired 0.5 million new customers," it said in a regulatory filing.
The company said it continues to remain well-capitalised with capital adequacy ratio of approximately 26.4% at the end of the June quarter. Consolidated liquidity surplus was approximately ₹17,600 crore as of 30 June 2020. The company's liquidity position remains very strong," it said.
The deposit book of the non-banking financial company (NBFC) stood at approximately ₹20,000 crore in Q1 FY21, as compared to ₹15,084 crore in the same period last year.
In May, Bajaj Finance had said that owing to the covid-19 pandemic and the consequent lockdown, it lost 10 productive days in Q4 FY20 resulting in lower acquisition of nearly 1 million loan accounts and lower asset under management (AUM) of approximately ₹4,500 crore.