Provisions on bad loans fell 37% to Rs 1231 crore in the quarter ended March 2021 from Rs 1954 crore last year while finance costs fell 14% to Rs 2196 crore from Rs 2547 crore in March 2020.
The fall in provisions and other expenses allowed the company to report a profit even as total income fell 5% to Rs 6851 crore in March 2021 from Rs 7227 crore a year earlier.
Consolidated assets under management inched up 4% to Rs 1.52 lakh crore from Rs 1.47 lakh crore a year ago. However, the total new loans booked during the quarter at 5.47 million were still lower than 6.03 million reported last year indicating the slow post pandemic recovery.
Net Interest Income (NII) dropped marginally to 4,659 crore as against Rs 4,684 crore a year ago. The company reversed interest income Rs 298 crore during the quarter compared to Rs 122 crore reversed in the quarter ended March 2020.
“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,” Bajaj Finance said in a statement.
Gross NPAs edged up to 1.79% from 1.61% a year ago. The company has provisioning coverage ratio of 58% on stage 3 assets and 181 basis points on stage 1 and 2 assets as of 31 March 2021. One basis point is 0.01 percentage point.
The company had a liquidity surplus as of Rs 16,485 crore as of March 2021 as against Rs 15,842 crore as of 31 March 2020.
Loans for commercial lending (29%) and loans against securities (26%) were the two fastest growing segements, however, consumer loans the largest part of the company balance sheet shrunk impacting profits.
