The company had posted a profit of Rs 1,506.29 crore in the corresponding quarter last year.
The NBFC’s net interest income increased 4 percent year on year to 4,165 crore. The ET NOW survey expected a figure of 4149 million rupees. “During the quarter, as a precautionary measure, the company has reversed the capitalized interest of Rs 142 million. The total amount of interest income reversed in H1FY21 was Rs 361 crore, ”Bajaj Finance said in a statement.
Consolidated Assets Under Management (AUM) increased marginally by around 1.15 percent year-on-year to Rs 1.37 crore as of September 30.
The company’s shares were trading 0.89 percent lower at Rs 3,233 after the quarterly result announcement, while the benchmark BSE Sensex index was down 0.45 percent to 40,360.
Bajaj Finance’s asset quality improved to gross non-performing assets (NPA) by 1.03 percent, down from 1.61 percent as of September 30 last year. Net NPA also fell to 0.37% from 0.65% YoY.
Credit losses and provisions for the second quarter stood at Rs 1,700 million compared to Rs 594 million last year. “As a consequence of the ongoing pandemic, the company has further increased its provisions on stage 1 and 2 assets by Rs 1,370 crore to Rs 5,099 crore as of September 30. The company has strong pre-provisioning profitability to manage credit losses arising from Covid-19, ”Bajaj Finance said.
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