Bajaj Finance on Wednesday reported a 29 per cent decline in consolidated net profit at Rs 1,146 crore for the third quarter ended December 31, 2020. The non-banking financial company (NBFC) had posted a consolidated net profit of Rs 1,614 crore in the same quarter last year.
The company's loan losses and provisions increased to Rs 1,352 crore in Q3 FY21 as against Rs 831 crore in the same period last year. During the quarter, Bajaj Finance has done one time writes-off of Rs 2,335 crore loans under moratorium on account of COVID-19 related stress, which includes principal outstanding of Rs 1,970 crore and interest outstanding of Rs 365 crore. The company holds a management overlay provision of Rs 800 crore as of 31 December 2020 for COVID-19 related stress, it said.
Net interest income of the company dropped by 5 per cent to Rs 4,296 crore from Rs 4,535 crore in Q3 FY20. "This was predominantly due to higher reversal of interest income at Rs 450 crore versus Rs 83 crore in Q3 FY20 and higher cost of liquidity surplus at Rs 213 crore versus Rs 83 crore in Q3 FY20," Bajaj Finance said in a regulatory filing.
Consolidated assets under management (AUM) declined by 6 per cent to Rs 1.09 lakh crore in Q3 FY21 compared to Rs 1.16 lakh crore in the same period last year.
New loans booked during Q3 FY21 were 6.06 million as against 7.67 million in Q2 FY20. Customer franchise stood at 46.31 million as against 40.38 million as of 31 December 2019. The company said it acquired 2.19 million new customers in Q3 FY21 as compared to 2.46 million in Q3 FY20.
The total operating expenses was lower by Rs 145 crore (or 9 per cent) to Rs 1,389 crore despite increase in recovery cost by Rs 58 crore. This reduction in operating expenses was on account of lower business volumes as well as measures taken to reduce operating expenses.
On the asset quality front, Bajaj Finance's gross non-performing assets (NPA) declined to 0.55 per cent as against 1.61 per cent in the year ago period. Net NPA also fell to 0.19 per cent from 0.70 per cent in the same period last year. The provisioning coverage ratio was 65 per cent.
Ahead of Q3 earnings, shares of Bajaj Finance ended 0.41 per cent higher at Rs 4,981.15 on the Bombay Stock Exchange.