Bajaj Finserv Financial Performance Q1 FY21
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Executive summary – Bajaj Finance Limited
SME Business
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Offers unsecured working capital loans to SM E and self-employed professionals
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• Secured offerings include enterprise loans against property and financing against used car
Commercial
business
Treasury
B
BAJAJ
FINSERV
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Focused on affluent SM Es (average sales of 15 to 17 crore) with established financials & demonstrated borrowing track record
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Offers short, medium and long term financing to mid market corporates
Offers a range of structured products collateralized by marketable securities or mortgage
• Offers financing against shares, mutual funds, insurance policies and deposits
Strategy is to create a balanced mix of wholesale and retail borrowings with a focus on long term borrowings
Borrowings stood at 95,717 crore with a mix of 43: 31: 21: 5 between money markets, banks, deposits & ECB as of 30 June 2020
Credit Quality
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Gross and Net NPA as of 30 June 2020 stood at 1.75% and 0.61%, respectively
Credit Rating
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Provisioning coverage ratio of 65% as of 30 June 2020
Standard assets provisioning of 332 bps (ECL stage 1 & 2). This includes contingency provision of 2,256 crores for COVID-19. Excluding
the same, standard assets provisioning stood at 122 bps.
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Credit rating for long term borrowing is AAA/ Stable by CRISIL, ICRA, CARE & India Ratings
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• Credit rating for short term borrowing is A1+ by CRISIL, ICRA & India Ratings
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Credit rating for FD program is FAAA/Stable by CRISIL & MAAA (Stable) by ICRA
Long term issuer credit rating of BB+/ Stable and short term rating of B by S&P Global
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