Bajaj Finserv Financial Performance Q1 FY21
Executive summary - Q1 FY21
Balance Sheet and Franchise:
BAJAJ
B FINSERV
Business operations were closed till 10 May 2020 and gradually restarted as local administrations eased lockdown conditions. As
of yesterday, company is operational in 2,322 location which represents 85% of company's business. 86 locations are closed for
business and collections which represents 15% of company's business.
2. AUM growth moderated to 7% YoY due to lockdown. It stood at 1,38,055 crore in Q1 FY21.
3. The Company restarted its sales finance, auto finance, LAS and Gold loan businesses from 10 May 2020 with stringent loan to
value (LTV) norms and focus on existing customers. Semi urban and rural market volume recovery is much stronger than
anticipated.
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Home loan and Credit card distribution businesses were restarted in June'20.
Restart of loan against property, SME, B2C urban, B2C rural and commercial businesses was deferred to July'20 due to extension of
moratorium.
6. At this juncture, based on our assessment, 75+ cities should revert to pre-COVID volumes by October, 40-75 Cities by end
November, 10-40 cities by January and top 10 cities by March. All this is of course subject to Government of India not enforcing a
2nd national lockdown. Based on this assessment, the Company estimates AUM growth of 10-12% in FY21.
7. Post restart in May, bounce rate and collection efficiency of 1.7 MM new loans disbursed is in line / marginally better than Pre-
COVID (Feb 20). If these metrics continue, the Company will be comfortable taking a stronger growth stance for 2nd half of the year.
8. Given the lockdown, the Company increased focus on its 42.95 MM customer franchise to increase penetration of fee products like
health card, health insurance etc. The Company sold 5.33 lac health card to its existing EMI card customers in Q1 FY21. This product
comes with higher limit, EM I financing tie ups at multi speciality hospitals and various other wellness benefits.
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