Rahul Bajaj steps down as Bajaj Finance chairman, share slips 6%
BusinessToday.In July 21, 2020
Bajaj Finance share price fell in trade today after the NBFC announced its Q1 earnings. The firm also said Rahul Bajaj, its current chairman, has decided to step down from his position at the end of this month.
Share price of Bajaj Finance fell 6.43% to Rs 3,220 against previous close of Rs 3,441 on BSE. Bajaj Finance stock has fallen after 3 days of consecutive gain. The stock trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages. The large cap stock has lost 22.5% since the beginning of this year.
However, the share has gained 21% in a month. Total 9.74 lakh shares changed hands amounting to turnover of Rs 332.11 crore on BSE.
At 3:00 pm, the share was trading 4.77% or Rs 164 lower at Rs 3,286. The firm reported fall 19.50% fall in net profit at Rs 962 crore in Q1 from Rs 1,195 crore in Q1 of 2018-19 over a contingency provision of Rs 1,450 crore for COVID-19. Net interest income rose 12 per cent to Rs 4,152 crore in Q1 from Rs 3,694 crore in Q1FY20.
The company made an additional contingency provision of Rs 1,450 crore in Q1, 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. In a related development, the firm announced Rahul Bajaj will step down as its chairman. His son Sanjiv Bajaj will take over as chairman of the NBFC from August 1.
"Rahul Bajaj, non-executive chairman of the company, having been at the helm since its inception in 1987 and the group for over five decades, as part of succession planning, has decided to demit the office with effect from close of business hours on July 31, 2020", Bajaj Finance said in release.