Non-banking finance company Bajaj Finance reported a 42 percent year-on-year (YoY) increase in the March quarter profit at Rs 1,347 crore on April 27, supported by a decline in the loan loss provisions. Profit in the same quarter of the previous year was Rs 948.1 crore.
Net interest income declined half a percent to Rs 4,659 crore from Rs 4,684 crore in Q4 FY20.
The numbers were ahead of analysts' expectations. Profit was estimated at Rs 1,311.2 crore and net interest income at Rs 4,438.4 crore for the quarter by analysts polled by CNBC-TV18.
Loan losses and provisions for Q4FY21 were at Rs 1,231 crore as against Rs 1,954 crore in Q4FY20 and Rs 1,352 crore in Q3FY21.
"During the quarter, the company has done accelerated writeoffs of around Rs 1 ,530 crore of principal outstanding on account of COVID-19 related stress and advancement of its writeoff policy. The company holds a management overlay and macro provision of Rs 840 crore as of March 2021," said Bajaj Finance.
Gross non-performing assets (NPA) declined to 1.79 percent as of March 2021 from 2.86 percent in the previous quarter and net NPA also dropped to 0.75 percent from 1.22 percent in the same period.
Consolidated assets under management stood at Rs 1,52,947 crore, increasing 3.9 percent from Rs 1,47,153 crore in March 2020, Bajaj Finance said in its BSE filing.
The company said new loans booked during Q4FY21 were 5.47 million as against 6.03 million in Q4FY20.
Profit for the financial year 2020-21 declined 16 percent to Rs 4,420 crore and net interest income rose 2.1 percent to Rs 17,269 crore compared to the previous year.
The liquidity surplus as of March 2021 was Rs 16,485 crore compared to Rs 15,842 crore in March 2020.
Bajaj Finance said the board of directors has recommended a dividend of Rs 10 per equity share of the face value of Rs 2 for FY21.
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The share price has corrected 10.6 percent in 2021, underperforming the Nifty Financial Service index that has gained 1.5 percent in the same period.