Bajaj Finance shares decline in Wednesday's session (October 7, 2020) as the company on Tuesday gave its Q2 business update as per which the company's consolidated deposit book gained as much as 22.5 percent to Rs. 21600 crore. Also, the customer franchise surged by 14 percent to Rs 4.41 crore, a 14% increase.
The company's shares were dragged by over 5 percent to day's low price of Rs. 3286 per share.
During the period from July-September quarter, the company gained 1.2 million new customers. Nonetheless, the company's loan book reduced to 36 lakh as compared to 65 lakh in the year-ago period.
"The company continues to remain well capitalised with capital adequacy ratio of approximately 26.5 % while maintaining highest ever liquidity buffer. Consolidated liquidity surplus stood at approximately Rs 22,300 crore as of 30 September 2020, and the liquidity position remains very strong," the Pune headquartered non-banking finance company said.
Also, the company said it will increase its provisioning for Covid 19. Also the company's AUM has been contracting, and its market share in the consumer durable segment has been receding lower.
The company on October 6, 2020 was among the top active gainers and closed at Rs. 3474, a 2.8% gain.