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Profit may decline on double digits – Bajaj Finance Q3 review

It is anticipated that the Bajaj Finance will report a loss by double-digit in its Q3 review. The year-on-year profit has crippled due to uplifted provisions for the last quarter of December 2020.

As the volume picks up, the cost-to-income ratio is expected to climb up to 31 percent in the Q3 FY21. However, this ratio is expected to be 28 percent in the first half of FY21.

Even though its cost-to-income ratio is expected to climb up but, is awaited to be around 28 percent in the first half.

Bajaj Finance has disclosed 1 percent decrease in asset on a year-on-year basis. But, simultaneously an adjustment of 4 percent is reflected for the funding of IPO.

The assets under management have increased by a total 5 percent overall jumping up to Rs 1.44 lakh in Q321.

Profit could have increased smoothly by 35-45 percent QoQ. The provisions for bad loans could have declined by 10 or 20%.

But there was a good chance of increment by 50% in the provisions, which is why a decrease in the profit is expected to be doubled.

Overall, according to the current situation profit percent can fall by 19.3 as per the experts. It is also expected to have an increment of 58 percent in the provisions which is responsible for this double digit profit decline.


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