Bajaj Finance Spurts 10% As Decline In AUM Under Moratorium Cheered

Shares in NBFC major in aftersoon session surged as much as 10% as investors seem to be cheering the business update on Q1FY21 which specified that its loan book under RBI's allowed moratorium fell for June ended Month in comparison to April figures. The stock is the top gainer on both the indices.

The stock on Monday closed higher by 6% at Rs. 3109.05.

Bajaj Finance Spurts 10% As Decline In AUM Under Moratorium Cheered

NBFC major Bajaj Finance plans on increasing provisioning towards Covid 19 in the first quarter of FY21. In the previous quarter ended March of FY20 the consumer durable financier had earmarked a provision of Rs. 900 crore for Covid 19, which pulled the company's year on year consolidated net profit by 19.4% to Rs. 948.1 crore.

The company said its deposit book stood at around Rs 20,000 crore as of 30 June, up 32.6 per cent from Rs 15,084 crore a year ago, said the company in an exchange filing.

The new loans in the quarter ended June at the company declined 76.7 per cent to Rs 1.7 million from Rs 7.3 million a year ago.

Its assets under management (AUM) surged 7.06 per cent to around Rs 1,38,000 crore as of 30 June, from Rs 1,28,898 crore a year ago.

The company added 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.

"The company's liquidity position remains very strong," it said in a business update.
The company's loan book under moratorium also reduced from 27% in April end to 15.5% as of June 30.

GoodReturns.in