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Mumbai: Non-bank lender Bajaj Finance said on Tuesday that it will continue to accelerate its provisions for COVID-19 in the September quarter to further strengthen its balance sheet. It had registered a three-fold rise in provisions leading to a nearly 30% fall in profits before tax in the June quarter.
The company had made additional provisioning of Rs 1,450 crore in Q1, taking the contingent credit loss provision due to Covid to Rs 2,350 crore in the June quarter.
The lender also saw tepid loan growth with new loans it booked during the quarter halving to 3.6 million as compared to 6.5 million at the end of same period last year.
Assets under management also registered flat growth with total AUMs at Rs 1.37 lakh crore at the end of the September quarter compared to Rs 1.35 lakh crore a year ago.
Customer franchise as of September 40, stood at 44.1 million as compared to 38.7 million last year. During the quarter, the Company acquired 1.2 million new customers.
“The Company continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 26.5% as of 30 September 2020 while maintaining highest ever liquidity buffer,” the company said in an exchange notification.
Its Consolidated liquidity surplus stood at approximately Rs 22,300 crore. It’s deposit book stood at Rs 21,600 crore compared to Rs 7,633 crore same period last year.
At the the end of June, Bajaj Finance had reported that its moratorium book had come down to Rs 21,705 crore — 15.7 per cent of the assets under management at the end of Q1 — from Rs 38,599 crore (27.1 per cent of AUM) at the end of April because of improved collections.
The company had made additional provisioning of Rs 1,450 crore in Q1, taking the contingent credit loss provision due to Covid to Rs 2,350 crore in the June quarter.
The lender also saw tepid loan growth with new loans it booked during the quarter halving to 3.6 million as compared to 6.5 million at the end of same period last year.
Assets under management also registered flat growth with total AUMs at Rs 1.37 lakh crore at the end of the September quarter compared to Rs 1.35 lakh crore a year ago.
Customer franchise as of September 40, stood at 44.1 million as compared to 38.7 million last year. During the quarter, the Company acquired 1.2 million new customers.
“The Company continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 26.5% as of 30 September 2020 while maintaining highest ever liquidity buffer,” the company said in an exchange notification.
Its Consolidated liquidity surplus stood at approximately Rs 22,300 crore. It’s deposit book stood at Rs 21,600 crore compared to Rs 7,633 crore same period last year.
At the the end of June, Bajaj Finance had reported that its moratorium book had come down to Rs 21,705 crore — 15.7 per cent of the assets under management at the end of Q1 — from Rs 38,599 crore (27.1 per cent of AUM) at the end of April because of improved collections.
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