Bajaj Finance - Second Covid-19 Wave Impacts Volumes, Asset Quality: Nirmal Bang
A customer counts Indian one-hundred rupee banknotes in India. (Photographer: Dhiraj Singh/Bloomberg)

Bajaj Finance - Second Covid-19 Wave Impacts Volumes, Asset Quality: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Bajaj Finance Ltd.’s mid-quarter update (Q1 FY22) indicates assets under management growth impact of Rs 40-50 billion (2.6-3.3% of FY21 AUM) and credit cost impact of Rs 11-13 billion due to asset quality deterioration caused by the second Covid-19 wave.

Equated monthly installment bounce rates are up (at 1.08 times of Q4 FY21) and forward flows across overdue positions are higher as collections have been constrained due to the severity of lockdowns across the country.

Non performing assets are expected to be elevated in the near-term.

In our last update, we had cited prolonged lockdowns as a key risk to growth.

Click on the attachment to read the full report:

Nirmal Bang Bajaj Finance -Company Update-7 June 2021 .pdf

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