Share of Bajaj Finance rose over 6 per cent after the company reported its March quarter earnings. Net profit in March quarter climbed 42 per cent to Rs 1347 crore compared to Rs 948 crore a year ago. Net Interest Income (NII) for the fourth quarter of FY21 was down half a percent to Rs 4,659 crore as against Rs 4,684 crore in Q4 FY20. New loans booked during Q4 FY21 were 5.47 million as against 6.03 million in Q4 FY20.
For the financial year 2020-21, profit declined 16 per cent to Rs 4,420 crore as against Rs 5,264 crore in FY20. The net interest income (NII) rose 2.1 per cent to Rs 17,269 crore as against Rs 16,912 crore in FY20. The company informed that the Board of Directors has recommended a dividend of Rs 10 per equity share of the face value of Rs 2 for FY21.
"During the quarter, the company has done accelerated write-offs of Rs 1,530 crore of principal outstanding on account of COVID-19 related stress and advancement of its write-off policy. The Company holds a management overlay and macro provision of Rs 840 crore as of 31 March 2021," the company said.
"A good quarter for the Company with most lead financial indicators normalizing to pre-COVID levels. The business transformation plan of the company is on track. We expect to launch 3-in-1 financial services in a phased manner by August and September. Overall, the Company is entering FY22 on a strong footing. Barring a nationwide lockdown or extended lockdowns in large GDP contributing states, the Company is confident of delivering its long-term guidance metrics in FY22," it added.
At 11:37 hours, Bajaj Finance was quoting at Rs 5195, up 6.60 percent on the BSE.