Bajaj Auto Finance reports a PAT of Rs 46.8 Crores in the first Quarter of FY-2010-11
In recent meeting of Board of Directors,performance of the company was discussed for the first quarter of FY 2010-11.It has been disclosed that Bajaj Auto Finance estimated a turn over of 46 crores in the mentioned period.
- (1888PressRelease) August 14, 2010 - The Board of Directors of Bajaj Auto Finance Limited in their Meeting held recently, took on record the Unaudited Financial Results of the Company for the first quarter ended 30th June 2010.
• Deployments during Q1 FY11 up 96% to Rs 2046.6 Crores from Rs 1045.9 Crores in Q1 FY10.
• Net interest income for Q1 FY11 up 51% to Rs 224.0 Crores from Rs 148.2 Crores in Q1 FY10.
• Profit after tax for Q1 FY11 up 208% to Rs 46.8 Crores from Rs 15.2 Crores in Q1 FY10.
• Loan loss provisions up 13% to Rs 60.6* Crores from Rs 53.6 Crores.
• Capital adequacy ratio including Tier-II capital (excluding current quarter's profits) stood at 23%.
• During the quarter the company raised Rs 490 Crores of longer tenor borrowings (>than 24 months) to strengthen its resource base including Rs 115 crores of subordinated debt brought in as Tier-II capital.
*In line with its conservative approach, the company continues to strengthen its provisioning norms beyond the Reserve Bank of India regulations by accelerating the provisioning to an early stage of delinquencies based on past experience and emerging trends. Consequently, the additional estimated provision aggregates Rs 16.4 crores for the quarter. Adjusting for this accelerated provisioning, the normalized loan loss provision would have been at Rs 44.2 crores.
Initiatives for the quarter:
1. Launch of new business lines - The Company has during the current quarter launched two new product lines viz. Construction equipment finance and Retail loans against securities. In these two new businesses the deployments for the current quarter were Rs 131.1 crores.
2. Web Strategy - The Company launched a new website with Business to Business (B2B) and Business to Customer (B2C) capability in the current quarter. It leverages technology as an enabler for superior process and customer services experience.
a) The website also offers web based instant online loan approval to consumer durable financing customers. It is first initiative of its kind being offered in the industry.
b) The B2B portal offers the company's channel partners to manage their relationship in a seamless manner. The portal provides information on transaction payments to partners, credit performance of customers sourced, incentive payments, reward points accretion etc.
c) The B2C portal helps customers manage their loan accounts related information online including installment payments, service requests, part prepayments, interest certificates, statement of accounts etc.
3. Direct cash collection model for 2 wheeler financing - The Company continued to strengthen this capability and expand this model rapidly across the country catering to semi-urban and rural customers.
The Company had an excellent start to FY11 aided by strong volume growth in consumer and SME business lines. Its investment in people processes and technologies have begun to yield results. The loan loss provisions have peaked and new vintages across products are performing significantly better.