Bajaj Finserv, the NBFC company posted a 77% year-on-year decline in its net profit for the quarter ended March of FY20 at Rs. 194 crore versus Rs. 839 crore in the same quarter a year ago. The decline in net profit is the result of the surge in the company’s lending assets impairment to Rs. 1950 crore, as compared to Rs. 410 crore in the previous year.
The assets under management (AUM) also stand reduced 7.7% quarter-on-quarter to Rs. 56,085 crore compared to Rs 60,789 crore in the December ended quarter.
For the period under review, the top-line however rose 3% y-o-y to Rs 13,294 crore as against Rs. 12,994 crore in the same quarter a year-ago. Also, interest income at the company increased 58% year-on-year to Rs. 7919 crore versus Rs 5,005 crore last year.
Also the company’s total insurance business during the quarter witnessed sharp fall by 22% year on year to Rs 6,066 crore.
“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”, S Sreenivasan, CFO of Bajaj Finserv said on the weak performance of the company during the quarter.