courtesy:moneycontrol.com
A non-banking finance company Bajaj finance share records a drop in its share price after the company announces the quality of its assets. The drop is recorded nearly 4% in early trade on 7th June after the company announces that it may see an increase in non-performing assets or NPAs in the first 6 months of Financial Year’22 starting from 1 April and ending on 31 March.
The company has also shared an estimated impact of the second wave of COVID-19 pandemic on the company’s finances in FY’22.
Forward streams across late positions were higher because of imperatives on assortments in the midst of severe lockdowns across most pieces of India. Therefore, the organization gauges its GNPA (net non-performing resource) and NNPA (net non-performing resource) in Q1 and Q2 to be higher, “company said in its mid-quarter update on June 4.
The company estimates a gradual credit cost of Rs. 1,100-1,300 crore versus planned credit cost in FY’22 by virtue of disturbance brought about by the second wave of the pandemic.
However, the most affected businesses in the company are B2B and Auto finance businesses, due to lockdowns in many parts of India. Their volume recorded a drop by 40% while these businesses delivered 70% of their planned values by April 2021. These low estimates were recorded due to lockdowns in states, as reported by money control news.
Other businesses were less impacted and delivered 85% of their planned values, they added.