Bajaj Finance AUM falls YoY in the Q1 for Financial Year 2021. Bajaj Finance Ltd’s, NBFC headquartered in Pune has taken a hit in the Q1 results of FY21. The year-on-year asset under management (AUM) growth recorded a mere 7% for the consumer lender, which averaged 35-40% over the years. Therefore, Bajaj Finance AUM falls drastically.
With the current pandemic. Moreover, Indians have turned cautious and refrained from making purchases of consumer. Which are durable using convenient equated monthly instalments (EMI). This was however not the case pre-COVID where EMIs were held as a beneficial credit instrument.
The company managed to add 1.7 million new loans during the June quarter as against 7.3 million added year-ago. Its AUM under moratorium has reduced to 15.5% as of 30 June from 27% as of end April. The management had earlier indicated that many of its customers availed moratorium as a means to conserve cash and hence moratorium levels should not be seen as signs of stress.
The company said it continues to remain well capitalized with capital adequacy ratio (CRAR) of approximately 26.4 per cent as of June 30. Its consolidated liquidity surplus was around Rs 17,600 crore as of June 30. It has also made a contingency provision of Rs. 900 crore for the current times.
While the lockdown restrictions across India have been lifted, several urban regions are still under various degrees of lockdown and consumption is yet to revive. Most recently, the Maharashtra Government allowed to open hotels, hospitality sector with a 33% capacity. There are hopes of an economy revival soon with increased spending on standard of living. On July 7 12:44 pm, the stock was quoted at Rs.3,238.50 on the National Stock Exchange (NSE).
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— Bajaj_Finserv (@Bajaj_Finserv) July 5, 2020
