Tag: Bajaj

High interest rates make Bajaj Finance FD the ideal investment avenue for one’s Diwali bonus, BFSI News, ET BFSI

Personal Finance

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Pune (Maharashtra) [India], November 3: The commencement of Diwali is accompanied by the joy of receiving one’s Diwali bonus. With the much-awaited Diwali bonuses being credited widely, it can be tempting to splurge and treat oneself to some extravagance. Still, it would be a more prudent choice to invest a portion of one’s hard-earned income.

For working professionals, saving and investing should be the top priorities for budgeting their earnings. This is one reason why one must actively seek out better ways of investing their money. Amidst the sea of uncertainties and volatile market movements, the fixed deposit has proved to be a safe harbour for investors. Bajaj Finance is one such financier that offers investors the dual benefit of high FD interest rates along with deposit safety.
Here’s why one should invest in this instrument to yield high risk-free returns this Diwali:
Benefit from high FD interest rates

Bajaj Finance offers one of the highest FD interest rates, up to 6.50%, along with an extra rate benefit of 0.10% p.a. for online investors. Senior citizens get an additional rate benefit of 0.25% p.a. irrespective of the mode of investment.

Consider an example where an individual invests Rs. 2,00,000 choosing a 5-year tenor in a Bajaj Finance online FD, the table shows the expected returns at maturity.

Loan against fixed deposit for cash crunches

Bajaj Finance Fixed Deposit offers a loan against the FD facility to address emergencies. This way, investors will not have to break their FD and thus, benefit from accumulated interest. The maximum loan amount one can avail of is 75% of the FD value.

Online FD calculator to estimate returns

To make financial planning simple, Bajaj Finserv gives free access to an online fixed deposit calculator. With it, investors can determine the returns they’ll earn at maturity. One needs to select the investment amount and tenor to get the results.

Easy online application process

Amidst all the celebrations, investors can kick-start their investment journey from the comfort of their homes. Booking an FD with Bajaj Finance is now easier than ever with an end-to-end paperless and digital process. One has to fill an online form and submit a few essential documents to start investing. Investing online can fetch investors aged below 60 years an additional rate benefit of 0.10% p.a.

Highest safety and credibility

Market-linked investments may offer high returns, but one must keep a close eye on them to shield them from fluctuations and capital loss. Fixed deposits, in this case, are incredibly safe, owing to their non-equity-linked nature as opposed to mutual funds and stocks. Moreover, Bajaj Finance FDs come with the highest ratings of MAAA and FAAA from ICRA and CRISIL, ensuring that their savings grow safely. This way, investors can be confident that their earnings are in safe hands.

Investors can consider investing their bonuses in a Bajaj Finance Fixed Deposit to grow their savings without worrying about market uncertainties.



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Bajaj Finance posts a stellar Q4, but Covid shadow looms, BFSI News, ET BFSI

Banking & Finance

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Bajaj Finance Ltd today posted a 30.2% on-year rise in its net profit for Jan-Mar to Rs 1,161 crore as it inched closer to pre-pandemic levels.

New loans booked during Q4 FY21 fell to 54.7 lakh (5.47 million) as against 60.3 lakh (6.03 million) in the same quarter a year ago, which shows that the consumer lending business is yet to pick up full steam.

Net interest income during the quarter dipped 1 per cent to Rs 4,659 crore from Rs 4,684 crore in Q4 FY20, it said.

Total income fell by 5 per cent to Rs 6,855 crore from Rs 7,231 crore earlier.

“4QFY21 was a healthy quarter for Bajaj Finance. Disbursements have exceeded 90% of YoY levels across most segments. The initial asset quality performance of incremental disbursements is in line with or marginally better than pre-Covid levels. This bodes well for asset quality in the medium term. In the near term, we do not foresee any major asset quality disruption, unless the impact of the second wave is worse than expected,” Motilal Oswal Securities wrote in a note, while upgrading the stock to ‘Buy’.

Assets under management

On a consolidated basis, the company’s assets under management as of March 31, 2021, increased by 4 per cent to Rs 1.52 lakh crore as against Rs 1.47 lakh crore. However, this growth came mainly due to a 19% jump in mortgages of subsidiary Bajaj Housing Finance.

However, the company said that despite the Covid disruptions, it would be able to grow back to pre-pandemic levels.

In the last 7–10 days, the company has continued to originate 50–55% of daily volumes in the B2B business, 80–85% in the B2C and SME businesses, and 40–50% in Mortgages. However, the company has said that barring a national lockdown, three-four large GDP-contributing states going into simultaneous lockdown for three-five weeks and another moratorium on loan repayment, it is confident of delivering its long-term guidance metrics in FY22.

Despite significant disruptions, Bajaj Finance remains open for business across geographies, in line with local administration advisories.

New loan originations, barring auto finance, are back at pre-Covid levels. The wallet loans business (paused) and retail EMI business have moderated and is doing 50K/month instead of a 150K/month run-rate.

Non-performing assets

The gross and net non-performing assets (NPAs) stood at 1.79 per cent and 0.75 per cent respectively by end of March 2021, as against 1.61 per cent and 0.65 per cent earlier.

The company has a provisioning coverage ratio of 58 per cent on stage 3 assets (NPAs) and 181 basis points on stage 1 and 2 assets as of March 31, 2021.

“Loan losses and provisions for FY21 was Rs 5,969 crore as against Rs 3,929 crore in FY20. During the year, the company has done accelerated write-offs of Rs 3,500 crore of principal outstanding on account of Covid-19 related stress and advancement of its write off policy.

“The company holds a management overlay and macro provision of Rs 840 crore as of March 31, 2021,” it added.

Bajaj Finance said its board of directors has recommended a dividend of Rs 10 per equity share for FY21.

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