Bajaj Finserv Q4 profit tumbles 77% to Rs 194 cr as COVID-19 provisions rise; interest revenue up 58% at Rs 7,919 cr

Bajaj Finserv's total insurance business in the March quarter declined significantly by 22 percent to Rs 6,066 crore.

Asian News International May 21, 2020 17:49:32 IST
Bajaj Finserv Q4 profit tumbles 77% to Rs 194 cr as COVID-19 provisions rise; interest revenue up 58% at Rs 7,919 cr

Mumbai: Bajaj Finserv on Thursday reported 77 percent decline in its Q4 FY20 consolidated net profit to Rs 194 crore as compared to Rs 839 crore in the corresponding quarter of previous fiscal.

It said the profit excluding COVID-19 impact totalled Rs 1,001 crore versus Rs 839 crore in Q4 FY19.

However, total income rose to Rs 13,294 crore in Q4 FY20 from Rs 12,995 crore in Q4 FY19.

Interest income also surged 58 percent to Rs 7,919 crore as compared to Rs 5,005 crore in the previous year.

Bajaj Finserv Q4 profit tumbles 77 to Rs 194 cr as COVID19 provisions rise interest revenue up 58 at Rs 7919 cr

Representational image. News18

The company said that spread of COVID-19 pandemic resulted in a sudden and steep fall in the value of shares traded on the stock exchanges.

In Q4 FY20, the Nifty 50 Index and the BSE 200 index lost 29 percent.

Under Ind AS, the insurance subsidiaries have chosen to hold equity securities as fair value through profit and loss account and therefore the insurance companies had an unrealised mark-to-market (MTM) pre-tax loss of Rs 768 crore in the consolidated financials.

Click here to follow LIVE updates on coronavirus outbreak

Additionally, Bajaj Finance Ltd made a pre-tax provision of Rs 900 crore in the form of contingency provision on account of the impact of COVID-19 .

The MTM adjustment and the contingency provision, together considered as COVID-19 impact, after adjusting for tax and the company's interest in those subsidiaries have impacted consolidated profit after tax of Bajaj Finserv for Q4 and FY20 by Rs 807 crore.

The company's total insurance business in the March quarter declined significantly by 22 percent to Rs 6,066 crore.

The assets under management came in at Rs 56,085 crore compared to Rs 60,789 crore, down 7.7 percent quarter-on-quarter.

Chief Finance Officer S Sreenivasan the situation is still evolving and it is difficult to hazard a guess on how this pandemic will evolve.

"The company and its subsidiaries will be focusing on profitability over growth, seeking to conserve cash, borrowing long-term, strengthening collections, reducing overheads and preserving capital adequacy," he said.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group.

Updated Date:

also read

COVID-19 crisis: Hospitals buckle, crematoriums overwhelmed as India sees nearly 3.5 lakh new cases, 2,767 deaths
India

COVID-19 crisis: Hospitals buckle, crematoriums overwhelmed as India sees nearly 3.5 lakh new cases, 2,767 deaths

According to reports, in New Delhi, burial grounds are running out of space. In Bhopal, there are hours-long waits despite crematoriums increasing capacity from dozens of pyres to more than 50

Kamala Harris to deliver message of solidarity with people of India tomorrow
India

Kamala Harris to deliver message of solidarity with people of India tomorrow

The US Vice-President will make her remarks at an online event “Bolstering US COVID Relief Efforts in India: Perspectives from the Diaspora”, organised by the State Department

EC postpones bypolls to three Lok Sabha, eight Assembly seats over COVID-19 situation
India

EC postpones bypolls to three Lok Sabha, eight Assembly seats over COVID-19 situation

The poll body said it will take further decisions in the matter at an appropriate time after taking inputs from the states concerned