Bajaj Finserv Financial Overview
Executive summary - Q1 FY21
BAJAJ
B FINSERV
USD 1 = INR 75
9. Given the lockdown, the Company decided to convert some of its existing customers with no overdue and good repayment track
record from term loan to a flexi loan for a switch fee. The Company has been offering flexi loans to its customers for the last 5
years. As of March 31st, the existing book under flexi stood at $ 4,913 MM. The product provides the customers with flexibility to
drawdown when they need and prepay when they want digitally. It also has an added feature of only interest servicing for first 1 -
2 years. In Q1 FY21, the company has converted $ 1,147 MM of term loans into flexi loans.
10. The Company acquired 0.53 MM new customers in the current quarter. Total custom er franchise stood at 42.95 MM as of 30 June
2020, a growth of 16% YoY.
11. Existing customers contributed to 70% of new loans booked during Q1 FY21.
Liquidity Management
12. As of 20 July 2020, the Company had consolidated liquidity buffer of $ 2,745 MM and SLR investments of $ 340 MM. This represents
19.2% of its total borrowing. Given the environment, the Company will continue to run high liquidity buffer, despite an impact on
cost of funds in the short term.
13. The carry cost of excess liquidity in Q1 was $ 23 MM.
14. Deposits book stood at $ 2,675 MM, a growth of 33% YoY. Its contribution to consolidated balance sheet was 17% as of 30 June
2020. The Company continued to attract sizable retail deposits in Q1. The Company reduced rates for its retail deposit rates twice in
Q1 aggregating to a drop of 65 bps. The Retail: Corporate mix stood at 70: 30 as against 63: 37 in Q4 FY20 in line with its strategy
of reducing its reliance on corporate deposits.
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