Bajaj Finance Ltd (BFL) reported a 36 per cent decline in standalone net profit at ₹877 crore in the second quarter ended September 30, 2020 against ₹1,377 crore in the year ago quarter.

The decline in net profit is mainly on account of a 181 per cent jump in loan-loss provisions to ₹1,635 crore in Q2FY21 against ₹581 crore in Q2FY20.

Consequent to the ongoing pandemic, the company further increased its provisions on stage 1 and 2 assets by ₹1,306 crore to ₹4,879 crore as of September-end 2020 as against ₹3,573 crore as of June-end 2020.

During the reporting quarter, deferred tax credit of ₹263 crore cushioned the bottomline. In the year ago period, the company saw a deferred tax charge of ₹196 crore.

The number of new loans booked during Q2FY21 were 44 per cent lower at 36.10 lakh (64.50 lakh in Q2FY20). Assets under management declined about 6 per cent to ₹1,04,986 crore as at September-end 2020 against ₹1,10,946 crore as at September-end 2019.

Net interest income increased 5 per cent to ₹3,922 crore (₹3,746 crore).

Consolidated results

BFL's consolidated net profit, including the numbers of wholly-owned subsidiaries — Bajaj Housing Finance Ltd and Bajaj Financial Securities Ltd, was also down 36 per cent to ₹965 crore (₹1,506 crore).

The consolidated assets under management edged up 1 per cent to ₹1,37,090 crore as at September-end 2020 against ₹1,35,533 crore as at September-end 2019.

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The company, in a statement, said liquidity surplus as of September-end 2020 stood at ₹22,414 crore (₹ 8,107 crore).

“The cost of liquidity surplus for Q1FY21 was approximately ₹220 crore as against ₹47 crore in Q2 FY20. The company’s liquidity position remains very strong,” BFL said.

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