- Q1FY21 was a pandemic quarter. The focus was on capital preservation and employee safety.
- Till the 10th of May, complete business operations were closed. 2302 locations are active now representing 85% of locations.
- Expectations – 75+ cities to be back at pre COVID level by September, 40+ cities by October.
- 10-12% AUM growth expectation in FY21.
- Bajaj finance’s new product Health card which launched recently had sales of 5.33 lakh cards with a net fee income of Rs 35 crs in Q1FY21. (Having multiple lines of business, it keeps on tweaking them to deliver growth or beat slowdown)
- Management convinced towards never wasting a crisis as it throws many opportunities and crisis brings about many structural changes.
- One line item that may have a lot of impacts, one of them is Operating expenditure (OpEx)
- OpEx to NIM can go to 28% from 31.5% in FY22 as they go back to normal levels again.
- Risk-driven company: Provisions of 3.5k cr mostly done to keep a fully costed P&L.
- The wallet has 15 mn takers, & total customers are 43mn.
- There should be a day when all our customers are wallet customers and that’s the thought.
- Credit cards, they would like to be amongst the top 3 as they have the customer base. Rbl strategic partner and this segment is a good profit pool for them (as RBL assumes the credit risk)
- Bounce rates dropping 3-4% every month in the past 3 months. Collection efficiency increasing 8-10% and July also they expect the same.
- Gold loans started in rural markets 3-4 years ago. 18 months ago they realised it doesn’t really work. 70-80 cr net assets per month, rapidly expanding in 75+ markets. Offered in 400 cities as a standard offering. They will grow this much more rapidly.
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