Bajaj Finserv - Covid-19 Update and Business Continuity Plan
BFL's - Summary on Covid-19
BAJAJ
B FINSERV
Consolidated moratorium book has reduced sharply to Rs. 21,705 crore (15.7% of AUM)
as of 30 June 2020 from Rs. 38,599 crore (27.1% of AUM) as of 30 April 2020 owing to
reduction bounce / dishonor rates coupled with improved collection efficiencies.
Company has made an additional contingency provision of 1,450 crore for COVID-19
taking the overall contingency provision for COVID-19 to 2,350 crore as of 30 June 2020.
The Company has made an overall contingency provisioning of 10.8% on its moratorium
book as of 30 June 2020. On this moratorium book, the Company has an additional ECL
provision of 623 crore, taking the overall provision coverage on the moratorium book to
13.7%.
In addition, as a matter of prudence, in line with contingency provision, the Company has
also reversed interest income to the tune of 220 crore from the interest capitalized
during the moratorium period.
The Company has strong pre-provision profitability to absorb increased losses caused by
Covid-19.
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