PUNE, MUMBAI, 20 JANUARY, 2021 (GPN): A meeting of the Board of Directors of Bajaj Finance Limited (BFL) was held today to consider and approve the unaudited standalone and consolidated results for the quarter ended 31 December 2020.

The consolidated results of BFL include the results of its wholly owned subsidiaries viz. Bajaj Housing Finance Limited (BHFL) and Bajaj Financial Securities Limited (BFinsec).

CONSOLIDATED PERFORMANCE HIGHLIGHTS

Consolidated assets under management        – ₹ 143,550 crore   v/s     ₹ 145,092 crore

Consolidated profit after tax            – ₹     1,146 crore   v/s     ₹     1,614 crore   

CONSOLIDATED PERFORMANCE HIGHLIGHTS – Q3 FY21

• New loans booked during Q3 FY21 were 6.04 million as against 7.67 million in Q3 FY20. 
• Customer franchise as of 31 December 2020 stood at 46.31 million as against 40.38 million as of 31 December 2019. The Company acquired 2.19 million new customers in Q3 FY21 as compared to 2.46 million in Q3 FY20.
• Assets under management (AUM) as of 31 December 2020 was ₹ 143,550 crore as against
  ₹ 145,092 crore as of 31 December 2019.
• Liquidity surplus as of 31 December 2020 stood at ₹ 14,347 crore as against ₹ 11,384 crore as of 31 December 2019. The cost of liquidity surplus for Q3 FY21 was ₹ 213 crore as compared to ₹ 83 crore in Q3 FY20.
• Net Interest Income (NII) for Q3 FY21 was ₹ 4,296 crore as against ₹ 4,535 crore in Q3 FY20. NII for the quarter was lower by ₹ 239 crore as compared to Q3 FY20. This was predominantly due to higher reversal of interest income at ₹ 450 crore versus ₹ 83 crore in Q3 FY20 and higher cost of liquidity surplus at ₹ 213 crore versus ₹ 83 crore in Q3 FY20.
• Total operating expenses to net interest income for Q3 FY21 was 32.3% as against 33.8% in Q3 FY20. Total operating expenses for the quarter was lower by ₹ 145 crore (or 9%) to ₹ 1,389 crore despite increase in recovery cost by ₹ 58 crore. This reduction in operating expenses was on account of lower business volumes as well as measures taken to reduce operating expenses.
• Loan losses and provisions for Q3 FY21 was ₹ 1,352 crore as against ₹ 831 crore in Q3 FY20. During the quarter, the company has done one time write-off of principal outstanding of ₹ 1,970 crore and interest outstanding of ₹ 365 crore on account of COVID-19 related stress. The Company holds a management overlay provision of ₹ 800 crore as of 31 December 2020 for COVID-19 related stress.
• Profit before tax for Q3 FY21 was ₹ 1,555 crore as against ₹ 2,170 in Q3 FY20.
• Profit after tax for Q3 FY21 was ₹ 1,146 crore as against ₹ 1,614 crore in Q3 FY20.
• Gross NPA and Net NPA as of 31 December 2020 stood at 0.55% and 0.19% respectively, as against 1.61% and 0.70% as of 31 December 2019. The provisioning coverage ratio as of 31 December 2020 was 65%. Provisioning coverage on stage 1 and 2 assets was 190 bps as of 31 December 2020.

Hon’ble Supreme Court, in a public interest litigation (Gajendra Sharma Vs. Union of India & Anr), vide an interim order dated 3 September 2020, has directed that accounts which were not declared NPA till 31 August 2020 shall not be declared as NPA till further order. Accordingly, the Company has not classified any accounts which were not NPA as of 31 August 2020, as per RBI norms, as NPA after 31 August 2020. However, if the Company had classified borrower accounts as NPA after 31 August 2020, the Company’s Gross NPA and Net NPA ratio would have been 2.86% and 1.22% respectively.

• Capital adequacy ratio (including Tier-II capital) as of 31 December 2020 stood at 28.18%. The Tier-I capital stood at 24.73%.
• The Company has received RBI approval for issuance of cobranded credit card in association with DBS Bank (India) Limited.

A – Breakup of consolidated AUM and deposits book.

(₹ In Crore)

AUM	As of 31 December 2020	Consolidated as of 31 December 2019	Growth
BFL Standalone	BHFL	BFL Consolidated
Consumer B2B	22,892	–	22,892	27,136	(16)%
Consumer B2C	28,060	981	29,042	29,380	(1)%
Rural B2B	2,438	–	2,438	2,708	(10)%
Rural B2C	10,954	–	10,954	9,957	10%
SME lending	18,717	165	18,882	18,702	1%
Commercial lending	12,487	–	12,584	13,017	(3)%
Mortgage lending	14,050	34,346	46,758	44,192	6%
Total AUM	109,598	35,492	143,550	145,092	(1)%

Deposits	As of 31 December 2020	As of 31 December 2019	Growth
Deposits book	23,777	20,235	18%

^@ Approximately 19% of the consolidated borrowings and 24% of the standalone borrowings.

B – Summary of consolidated financial results

                                                                                                                    (₹ In Crore)

Particulars	Q3’21	Q3’20	QoQ	9m’21	9m’20	9Mo9M	FY’20
New loans booked (numbers in million)	6.04	7.67	(21)%	11.41	21.41	(47)%	27.44
Assets under management	143,550	145,092	(1)%	143,550	145,092	(1)%	147,153
Receivables under financing activity	137,920	139,561	(1)%	137,920	139,561	(1)%	141,376
Interest income	5,723	6,104	(6)%	17,279	16,668	4%	22,970
Fees, commission and other income	797	777	3%	2,009	2,125	(5)%	2,879
Net gain on fair value changes on investments	139	143	(3)%	540	362	49%	537
Total income	6,659	7,024	(5)%	19,828	19,155	4%	26,386
Interest expenses	2,363	2,489	(5)%	7,218	6,926	4%	9,473
Net interest income (NII)	4,296	4,535	(5)%	12,610	12,229	3%	16,913
Total operating expenses	1,389	1,534	(9)%	3,702	4,209	(12)%	5,662
Loan losses and provisions	1,352	831	63%	4,738	1,976	140%	3,929
on stage 1 and 2	(2,391)	203	(1,278)%	409	462	(11)%	1,318
on stage 3 and write off	3,743	628	496%	4,329	1,514	186%	2,611
Profit before tax	1,555	2,170	(28)%	4,170	6,044	(31)%	7,322
Profit after tax	1,146	1,614	(29)%	3,073	4,316	(29)%	5,264

STANDALONE PERFORMANCE HIGHLIGHTS

• Assets under management (AUM) as of 31 December 2020 was ₹ 109,598 crore as against
  ₹ 116,460 crore as of 31 December 2019.
• Net Interest Income (NII) for Q3 FY21 was ₹ 3,977 crore as against ₹ 4,265 crore in Q3 FY20. NII for the quarter was lower by ₹ 288 crore as compared to Q3 FY20. This was predominantly due to higher reversal of interest income at ₹ 456 crore versus ₹ 82 crore in Q3 FY20 and higher cost of liquidity surplus at ₹ 193 crore versus ₹ 72 crore in Q3 FY20.
• Loan losses and provisions for Q3 FY21 was ₹ 1,245 crore as against ₹ 817 crore in Q3 FY20. During the quarter, the company has done one time write-off of principal outstanding of ₹ 1,970 crore and interest outstanding of ₹ 365 crore on account of COVID-19 related stress. 
• Profit after tax for Q3 FY21 was ₹ 1,049 crore as against ₹ 1,488 crore in Q3 FY20. 

C – Summary of standalone financial results of Bajaj Finance Limited

          (₹ In Crore)

Particulars	Q3’21	Q3’20	QoQ	9M’21	9M’20	9Mo9M	FY’20
New loans booked (numbers in million)	6.00	7.64	(21)%	11.36	21.34	(47)%	27.35
Assets under management	109,598	116,460	(6)%	109,598	116,460	(6)%	116,102
Receivables under financing activity	107,056	113,601	(6)%	107,056	113,601	(6)%	113,417
Interest income	4,973	5,486	(9)%	15,141	15,052	1%	20,668
Fees, commission and other income	745	709	5%	1,908	1,952	(2)%	2,706
Net gain on fair value changes on Investments	129	121	7%	487	315	55%	460
Total income	5,847	6,316	(7)%	17,536	17,319	1%	23,834
Interest expenses	1,870	2,051	(9)%	5,723	5,801	(1)%	7,857
Net interest income (NII)	3,977	4,265	(7)%	11,813	11,518	3%	15,977
Total operating expenses	1,310	1,449	(10)%	3,502	3,975	(12)%	5,364
Loan losses and provisions	1,245	817	52%	4,520	1,940	133%	3,805
on stage 1 and 2	(2,463)	198	(1,344)%	229	445	(49)%	1,233
on stage 3 and write off	3,708	619	499%	4,291	1,495	187%	2,572
Profit before tax	1,422	1,999	(29)%	3,791	5,603	(32)%	6,808
Profit after tax	1,049	1,488	(30)%	2,795	3,990	(30)%	4,881

PERFORMANCE HIGHLIGHT OF SUBSIDIARIES

Bajaj Housing Finance Limited 

• Assets under management (AUM) as of 31 December 2020 grew by 18% to ₹ 35,492 crore from
  ₹ 30,035 crore as of 31 December 2019.
• Net Interest Income for Q3 FY21 was up 15% to ₹ 329 crore as against ₹ 285 crore in Q3 FY20. 
• Loan losses and provisions for Q3 FY21 was ₹ 107 crore as against ₹ 14 crore in Q3 FY20.
• Profit after tax for Q3 FY21 was ₹ 99 crore as against ₹ 131 crore in Q3 FY20. 
• Gross NPA and Net NPA as of 31 December 2020 stood at 0.06% and 0.03% respectively, as against 0.07% and 0.05% as of 31 December 2019. The provisioning coverage ratio as of 31 December 2020 was 40%. Provisioning coverage on stage 1 and 2 assets was 93 bps as of 31 December 2020.
• Capital adequacy ratio (including Tier-II capital) as of 31 December 2020 stood at 24.94%

D – Summary of standalone financial results of Bajaj Housing Finance Limi    ted

          (₹ In Crore)

Particulars	Q3’21	Q3’20	QoQ	9m’21	9m’20	9Mo9M	FY’20
Assets under management	35,492	30,035	18%	35,492	30,035	18%	32,705
Receivables under financing activity	30,772	25,961	19%	30,772	25,961	19%	27,975
Interest income	747	620	20%	2,134	1,616	32%	2,303
Fees, commission and other income	65	81	(20)%	130	212	(39)%	269
Net gain on fair value changes on Investments	9	22	(59)%	51	44	16%	74
Total Income	821	723	14%	2,315	1,872	24%	2,646
Interest Expenses	492	438	12%	1,495	1,125	33%	1,616
Net Interest Income (NII)	329	285	15%	820	747	10%	1,030
Operating Expenses	87	96	(9)%	231	266	(13)%	339
Loan losses and provisions	107	14	664%	217	36	503%	124
on stage 1 and 2	72	6	1,100%	180	18	900%	86
on stage 3 and write off	35	8	338%	37	18	106%	38
Profit before tax	135	175	(23)%	372	445	(16)%	567
Profit after tax	99	131	(24)%	274	331	(17)%	421

Bajaj Financial Securities Limited (BFinsec)

• Total Income for Q3 FY21 was ₹ 7.66 crore. 
• BFinsec made a net profit of ₹ 0.67 crore in Q3 FY21. ENDS