You are here: Home » Opinion ยป Financial X-Ray
Business Standard

Bajaj Finance: Focus shifts from growth to capital preservation

Profit plunges as the lender loses business worth Rs 4,500 cr in 8 days of lockdown

Bajaj Consumer | Bajaj Discover

For a business largely dependent by volumes, the March quarter (Q4) results of Bajaj Finance are a good indicator as to how financials can get derailed if lending halts for seven-eight days in a quarter. For the first time in six years, Bajaj Finance reported a contraction in net profit, down 19 per cent year-on-year because of higher provisioning costs. Pre-tax profit fell 29 per cent year-on-year.

New customer acquisitions plunged 22 per cent sequentially in Q4. Before the results, Morgan Stanley had already assumed that new customer growth may be negligible in FY21. With key ...

First Published: Wed, May 20 2020. 12:28 IST