Bajaj Finance Q3 Review - Stressed Pool Stable; Guidance Positive: Motilal Oswal
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Motilal Oswal Report
Bajaj Finance Ltd.’s profit after tax declined 29% YoY to Rs 11.5 billion (19% miss) in Q3 FY21.
The miss was wholly on account of the lower-than-expected net interest income (15% miss). The same was offset by lower credit costs (10% beat). An interest reversal of Rs 4.5 billion led to the NII miss.
Gross non-performing loss ratio (excluding the Supreme Court dispensation on term loan EMIs payments) increased to 2.86% from 1.34% QoQ.
The company wrote-off approximately Rs 20 billion worth of loans (1.4% of loans) and restructured Rs 20.4 billion worth of loans (1.4% of loans).
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