Bajaj Finserv Financial Performance Q1 FY21
Executive summary - Q1 FY21
Profitability
B
BAJAJ
FINSERV
28. Consolidated PAT for the quarter contracted by 19% YoY to 962 crore after taking contingency provision of 1,450 crore and
interest income reversal of 220 crore. Pre-provision profitability remained strong.
29. The Company has revised its margin profile in certain businesses to protect its overall profitability. On mortgage business, the
company is facing significant pricing pressure and is repivoting its mix marginally for short to medium term.
30. Return on Assets for the quarter was 0.7% and Return on Equity was 2.9% (not annualised)
Capital:
31. The Company continues to remain very well capitalised with CRAR of 26.4% as of 30 June 2020. Its Tier-1 capital was 22.6%. The
Company remains one of the best capitalised large NBFCs in India.
Business transformation - 'Never let a crisis go waste':
32. The Company is accelerating its 3rd transformation journey conceptualized in Q3 FY20. The company is utilizing this pandemic time
to completely transform itself by deploying "Zero based budgeting" methodology to reimagine all its businesses and functions. All
businesses and functions are getting into micro detail of every process, customer moment of truth and cost lines and completely
reimagining them. As a result, we plan to come out of this crisis as a company with enhanced customer experience, stronger
digital orientation and a leaner cost structure. As and when dem and comes back fully, we will be ready to leverage this
transformation to grow our business rapidly.
33. At this juncture, company has access to 105 MM customers and prospects. It intends to create an ecosystem of sales finance
products and complete range of financial services for these customers and prospects.
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