Bajaj Finance Q4 profit down 19 pc to Rs 948 crore on higher provisions
May 19, 2020
Mumbai (Maharashtra) [India], May 19 : Bajaj Finance on Tuesday posted a consolidated profit after tax for Q4 FY20 at Rs 948 crore, down 19 per cent from Rs 1,176 crore in the corresponding period of previous fiscal.
Adjusted for a contingency provision of Rs 900 crore for Covid-19, profit for the quarter was up by 38 per cent at Rs 1,622 crore, the company said in a statement.
Loan losses and provisions (expected credit loss) for Q4 FY20 were Rs 1,954 crore as against Rs 409 crore in Q4 FY19.
During the quarter, the company took an accelerated charge of Rs 390 crore for two identified large accounts, an additional provision of Rs 129 crore on account of recalibration of its ECL model and a contingency provision of Rs 900 crore for Covid-19.
Adjusted for these additional provisions of Rs 1,419 crore, loan losses and provisions for Q4 FY20 was Rs 535 crore.
Due to Covid-19 pandemic and the consequent lockdown, the Bajaj Finance lost 10 productive days in Q4 FY20, resulting in the lower acquisition of nearly one loan accounts and lower assets under management (AUMs) of about Rs 4,500 crore.
Adjusted for the impact of lockdown, AUM growth would have been 31 per cent.
The company is well capitalised with capital to risk (weighted) assets ratio (CRAR) of 25.01 per cent as on March 31. It remains one of the most capitalised among large non-banking finance companies in India.
The company has overall liquidity surplus of Rs 15,725 crore on consolidated basis. On May 15, it was Rs 20,900 crore.
In accordance with the RBI guidelines relating to Covid-19 regulatory package, the company has offered EMI mortarium to its customers based on requests as well as on a suo-moto basis.
"At this juncture, the company is focused on capital preservation, balance sheet protection and operating expenses management," it said.
"Given its healthy capital adequacy, strong liquidity position, low gross NPA and net NPA, access to retail deposits, large customer franchise, diversified portfolio mix, granular geographical distribution and strong risk metrics, the company is confident of successfully dealing with challenges posed by Covid-19."
