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Bajaj Finserv on Wednesday reported an 18.06 per cent decline in consolidated net profit at Rs 986.29 crore for the quarter ended September.
The company had reported a net profit of Rs 1,203.72 crore in the year ago.
The holding company, which runs various financial services businesses under the Bajaj group, said its total revenue from operations came in at Rs 15,049.60 crore, 5.82 per cent higher from Rs 14,221.9 crore a year ago.
The pandemic and consequent lockdown imposed by the governmental authorities has considerably impacted the group’s business operations for the half year ended September 30, in respect to subsidiaries engaged in the business of lending -- Bajaj Finance, together with its subsidiary, Bajaj Housing Finance, the company said in a release.
Apart from other adverse effects, the pandemic has also resulted in a significantly lower business acquisition and put constraints on recovery of overdues from customers of these subsidiaries, it added.
The group said it offered moratorium to its customers based on requests as well as on a suo moto basis from March 1 to August 31 in accordance with the guidelines from the Reserve Bank of India.
During the quarter, the company made an expected credit loss (ECL) provision on standard (stage 1 and 2) assets of Rs 1,370 crore, in respect of these subsidiaries, taking the overall EGL provision on standard assets to Rs 5,099 crore as on September 30.
The group said, it continues to hold a management overlay of Rs 2,260 crore as part of its ECL provision for standard assets of Rs 5,099 crore as on September 30.
Further, the company based on its estimate and judgement, has reversed capitalised interest of Rs 142 crore during the quarter, taking the overall reversal for the half year ended to Rs 361 crore. Given the dynamic and evolving nature of the pandemic, these estimates are subject to uncertainty and may be affected by the severity, duration of the pandemic and other variables, it added.
The company participates in the financing business through its 52.74 per cent holding in Bajaj Finance and in the protection business through its 74 per cent holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC).
Ahead of the announcement, Bajaj Finserv shares closed 0.75 per cent lower at Rs 5,905.90, while benchmark Sensex rose 0.40 per cent to Rs 40.707.31.
The company had reported a net profit of Rs 1,203.72 crore in the year ago.
The holding company, which runs various financial services businesses under the Bajaj group, said its total revenue from operations came in at Rs 15,049.60 crore, 5.82 per cent higher from Rs 14,221.9 crore a year ago.
The pandemic and consequent lockdown imposed by the governmental authorities has considerably impacted the group’s business operations for the half year ended September 30, in respect to subsidiaries engaged in the business of lending -- Bajaj Finance, together with its subsidiary, Bajaj Housing Finance, the company said in a release.
Apart from other adverse effects, the pandemic has also resulted in a significantly lower business acquisition and put constraints on recovery of overdues from customers of these subsidiaries, it added.
The group said it offered moratorium to its customers based on requests as well as on a suo moto basis from March 1 to August 31 in accordance with the guidelines from the Reserve Bank of India.
During the quarter, the company made an expected credit loss (ECL) provision on standard (stage 1 and 2) assets of Rs 1,370 crore, in respect of these subsidiaries, taking the overall EGL provision on standard assets to Rs 5,099 crore as on September 30.
The group said, it continues to hold a management overlay of Rs 2,260 crore as part of its ECL provision for standard assets of Rs 5,099 crore as on September 30.
Further, the company based on its estimate and judgement, has reversed capitalised interest of Rs 142 crore during the quarter, taking the overall reversal for the half year ended to Rs 361 crore. Given the dynamic and evolving nature of the pandemic, these estimates are subject to uncertainty and may be affected by the severity, duration of the pandemic and other variables, it added.
The company participates in the financing business through its 52.74 per cent holding in Bajaj Finance and in the protection business through its 74 per cent holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC).
Ahead of the announcement, Bajaj Finserv shares closed 0.75 per cent lower at Rs 5,905.90, while benchmark Sensex rose 0.40 per cent to Rs 40.707.31.
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