InvestorQ : How did you find the June quarter results of Bajaj Finance?
Chandralekha Desai made post

How did you find the June quarter results of Bajaj Finance?

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NISHA Nayak answered.
5 months ago
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While Bajaj Finance did manage to maintain its growth in top line and bottom line, the pressure on the asset quality was distinctly visible. In fact, Bajaj Finance reported 4.2% growth in net profits at Rs.1,002 crore, which is absolutely normal, although the sequential numbers did come under pressure. However, it was the asset quality that came under stress resulting in elevated provisions and write-offs of Rs.1,750 crore in the quarter ended Jun-21.

The overall net Interest income or NII for Jun-21 quarter was up 8% at Rs.4,489 crore but loan loss provisions were also higher by 3.8% at Rs.1,750 crore during the quarter. In fact, on account of COVID 2.0 stress, Bajaj Finance had to accept an accelerated write-off worth Rs.113 crore. Gross NPAs increased by 156 basis points to 2.96% while net NPAs were up at 1.46%. ON the positive side, Bajaj Finance crossed the 5 crore customer mark during Q1.

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