NEW DELHI: Bajaj Finance saw a significant deterioration in asset quality as gross non-performing assets (NPA) and net NPA stood at 2.96% and 1.46% respectively as of June 30, 2021, as against 1.79% and 0.74% q-on-q. In absolute terms, gross bad loans rose by Rs 2,006 crore to Rs 4,737 crore.
The auto finance business was worst affected. Its gross NPA grew by Rs 1,199 crore to Rs 2,426 crore. Bad loans across other businesses increased by Rs 807 crore to Rs 2,311 crore as of June 2021. “It was a muted quarter impacted by a severe second wave of the pandemic.
Both businesses and debt management efficiencies were affected due to strict lockdowns across most parts of India. Business transformation remains on track for phase-1 to go live in October 2021,” the company said in an investor presentation. In absence of a severe third wave, Bajaj Finance aims to bring down its gross NPA to 1.7-1.8% and net NPA to 0.7-0.8% by March 2022.
Asian Paints profit jumps two-fold to Rs 574.30 crore
Asian Paints on Tuesday reported an over two-fold increase in its consolidated profit to Rs 574.30 crore for the first quarter ended June 30, 2021, on account of higher revenue from operations. The company had posted a profit of Rs 219.61 crore during the April-June quarter of the previous fiscal. Its revenue from operations during April-June 2021 jumped 91.1% to Rs 5,585.36 crore as against Rs 2,922.66 crore in the same period previous fiscal, Asian Paints said. Asian Paints MD and CEO Amit Syngle said, “The domestic decorative business more than doubled its volume and delivered stellar revenues over the lower base of last year which had suffered from the first nationwide lockdown.”