Bajaj Finance, a subsidiary of Bajaj Finserv, on Tuesday reported a 32 per cent growth in consolidated net profit at Rs 5,264 crore for the full financial year ended March 31, 2020. The non-banking financial company (NBFC) had posted a consolidated net profit of Rs 3,995 crore in the previous financial year, Bajaj Finance said in a filing to the Bombay Stock Exchange.
Net Interest Income for FY20 was up by 42 per cent to Rs 16,913 crore from Rs 11,877 crore in FY19.
For the fourth quarter ended March 31, 2020 (Q4 FY20), the NBFC major reported a 19.38 per cent decline in net profit at Rs 948.10 crore against Rs 1,176 crore in the corresponding period last fiscal, dented by higher provisions.
Revenue from operations stood at Rs 6,302 crore in Q4 FY20 as compared to Rs 5,307.66 crore in the same period last year. Net interest margin (NIM) for Q4 FY20 rose by 38 per cent to Rs 4,684 crore from Rs 3,385 crore in Q4 FY19.
The fees and other income grew by 45 per cent YoY to Rs 929 crore in Q4 FY20 from Rs 642 crore in Q4 FY19.
Loan losses and provisions (expected credit loss) in March quarter rose sharply to Rs 1,954 crore as against Rs 409 crore in Q4 FY19.
During January-March period, the company had taken 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, it said.
In FY20, new loans booked increased by 17 per cent to 2.74 crore from 2.35 crore in FY19. New loans booked during March quarter increased by 3 per cent YoY to Rs 60.3 lakh.
"Due to COVID-19 pandemic and the consequent lockdown, the company lost 10 productive days in Q4 FY20 resulting in lower acquisition of nearly 1.0 million loan accounts and lower AUM of approximately Rs 4,500 crore," it said.
Customer franchise increased by 24 per cent to 4.2.6 crore on 31 March 2020 from 3.45 crore on 31 March 2019.
On the asset front, Gross NPA and Net NPA stood at 1.61 per cent and 0.65 per cent, respectively, as of March 31, 2020.
Bajaj Finance's board has not recommended any final dividend. The interim dividend of Rs 10 per equity share of the face value of Rs 2 (500%) declared by its board, at its meeting held on 21 February 2020, will be considered as the final dividend forthe FY20, it said. Thus, the total dividend for FY20 remains Rs 10 per equity share (previous year Rs 6 per equity share).
Ahead of earnings announcement, share price of Bajaj Finance closed 1.40 per cent higher at Rs 1,967.25 on the BSE, while the BSE Sensex ended 0.56 per cent higher at 30,196.