Bajaj Finance, a provider of personal, home and vehicle loans on Wednesday reported a 29% decline in consolidated net profit for the quarter ending Dec.31, 2020.

The company has earned Rs 11,459.8 million in the third quarter compared with Rs 16,141.1 million in the corresponding quarter a year ago.

Revenue of the company for the quarter dropped by 6.25% to Rs 57,224.6 million compared to Rs 61,037 million in the corresponding quarter of the previous financial year.

Consolidated net interest income (NII) came at Rs 42,960 million for the December quarter, down 5.3% YoY due to higher reversal of interest income at Rs 4,500 million versus Rs 830 million in Q3FY20 and higher cost of liquidity surplus at Rs 2,130 million versus Rs 830 million in Q3FY20.

Total operating expenses to net interest income for Q3 FY21 was 32.3% as against 33.8% in Q3FY20. Total operating expenses for the quarter was lower by Rs 1,450 million (or 9%) to Rs 13,890 million despite increase in recovery cost by Rs 580 million.

This reduction in operating expenses was on account of lower business volumes as well as measures taken to reduce operating expenses. 

Gross NPA and Net NPA for the December 2020 stood at 0.55% and 0.19% respectively, as against 1.61% and 0.70% as of Dec. 31, 2019. The provisioning coverage ratio was 65%.

Capital adequacy ratio (including Tier-II capital) as of December 2020 stood at 28.18%. The Tier-I capital stood at 24.73%.

The Company has received RBI approval for issuance of cobranded credit card in association with DBS Bank (India).

During the quarter, the company has done one- time write-off of principal outstanding of Rs 19,700 million and interest outstanding of Rs 3650 million on account of COVID-19 related stress. The Company holds a management overlay provision of Rs 8000 million as of Dec.31, 2020 for COVID-19 related stress.Bajaj Finance EPS has decreased to Rs.18.94 in December 2020 from Rs.27.12 in December 2019.

Shares of the company gained Rs 20.3, or 0.41%, to settle  at  Rs 4,981.15.  The total volume of shares traded  was  165,005 at  the BSE (Wednesday).