Bajaj Finance Ltd (BFL) reported fall in net profit to Rs 962 crore for the quarter ended June 30 from Rs 1,195 crore in Q1 FY20 over a contingency provision of Rs 1,450 crore for COVID-19. The Pune-based company's net interest income rose 12 per cent to Rs 4,152 crore in Q1 from Rs 3,694 crore in Q1FY20.
During the quarter, the company made an additional contingency provision of Rs 1,450 crore, taking the overall contingency provision for COVID-19 to Rs 2,350 crore as of June 30. The contingency provision for COVID-19 is now at 10.8 per cent of the company's consolidated moratorium book, the company informed the stock exchanges.
Bajaj Finance's consolidated moratorium book has reduced to Rs 21,705 crore (or 15.7 per cent of AUM) from Rs 38,599 crore (or 27 per cent of AUM) as of April 30, 2020, owing to a reduction in bounce rate coupled with better collection efficiency, the company informed.
"The company continues to remain very well capitalised with CRAR of 26.40 per cent as of 30 June 2020. It remains one of the best capitalised large NBFCs in India. The company's liquidity position remains very strong with overall liquidity surplus of approximately Rs 17,700 crore as of 30 June 2020 on a consolidated basis," the company stated, adding that its liquidity surplus as of 20 July 2020 was Rs 20,590 crore.
The gross NPA and net NPA as of 30 June 2020 stood at 1.40 per cent and 0.50 per cent respectively, as against 1.60 per cent and 0.64 per cent as of 30 June 2019. The provisioning coverage ratio in Q1 was 65 per cent.
The company had earlier said it could provide additional provisions for COVID-19 to strengthen its balance sheet. The Bajaj Finance stock was trading 0.36 per cent or Rs 12.30 up at Rs 3,452.75 compared to its previous close of Rs 3,441.5 crore on National Stock Exchange on Tuesday.