Bajaj Finance shares fell as a lot as 5.2 per cent to hit an intraday low of Rs 5,681.20 on the BSE.
Shares of the Pune-based non-banking finance firm – Bajaj Finance – fell as a lot as 5.2 per cent to hit an intraday low of Rs 5,681.20 on the BSE after the corporate introduced its mid-quarter replace for the primary quarter of present monetary yr submit market hours on Friday. Bajaj Finance stated that because of the second wave of Covid-19 and consequent lockdowns throughout the nation its B2B and auto finance companies have been most affected.
“B2B and Auto Finance businesses were most affected due to strict lockdowns in majority of states. These businesses delivered 70 per cent of their planned volumes in April 2021 as multiple states started imposing lockdowns from mid-April. Their volumes dropped to 40 per cent in May 2021. Most states have indicated continued lockdown till 7th or 15th June. With expected reopening, June should be much better,” Bajaj Finance stated in an investor presentation.
Bajaj Finance has estimated an influence of Rs 4,000-5,000 crore to its property underneath administration (AUM) progress plan for the present fiscal yr.
Meanwhile, the corporate through the present quarter witnessed a marginal enhance in equated month-to-month instalments (EMI) bounce charges on a sequential foundation sue to second wave off Covid-19. “Average EMI bounce rates in Q1 FY22 were approximately 1.08 times of Q4 FY21,” Bajaj Finance stated.
“The company estimates an incremental credit cost of Rs 1,100-1,300 crore versus planned credit cost in FY2022 on account of disruption caused by the second wave,” the Pune-based firm added.
As of two:01 pm, Bajaj Finance shares traded 4.45 per cent decrease at Rs 5,726, underperforming the Nifty which surged to file excessive.
