Bajaj Finance reported a profit de-growth of 36% YoY due to higher provisioning in Q2. The profit after tax stood at Rs 965 crore as compared to Rs 1506 crore in the corresponding quarter last year. As guided by management the provisions remained at an elevated level. The provision during September quarter was at Rs 1700 crore registering an uptick of nearly 2.9 times on a YoY and 0.8% on QoQ basis. The asset quality largely remained steady with the GNPA ratio at 1.03% as against 1.4% reported in the previous quarter.
The company in their investor presentation updated, "Q2 was all about gradual unlocking of the economy. Our focus, as a continuous risk modelling to refine loss estimates, collections capacity augmentation and begin implementation of our business transformation keeping in mind a smaller aggregate economy over the next 12-18 months."