Thread by @kothariabhishek

.@CNBCTV18Live
@Bajaj_Finance Concall
Need from RBI:
a.Freezing of dpd for customers
b.Need low cost window opportunity for a year
c. One time restructuring of all loans
COVID-19 is the most brutal incidence seen impacting economy
Lost `4750 cr of AUM growth due to 80 day qtr

Q1 disruption will be more severe as it will be 60 day qtr
B2C is 20% of business; loans given to existing customers only
COVID-19 will have severe impact on all aspects of all businesses
Rural – 9% of B/S – expect recovery to be faster

Commercial clients will work for foreseeable period only with existing clients
Commercial clients portfolio is down 35-40% in last few days
Focused in building retail brokerage business
Decided to hold all fixed cost at current levels till Oct’20
Hawkish few on incremental capex

Risk-driven business – BAJAJ FINANCE
65-67% of customers are salaried & rest are self employed
Home loan clients are only salaried clients
LAP is given to self employed with avg exposure of Rs65 lakhs
Situation is fluid
Customer is in a state of shock
Impact is brutal

Customer is focused on savings
Commercial clients are seeking moratorium request
Elevated levels of defaults seen in SME
27-30% of defaulting customers pay digitally & rest come in to branch or pay to field officers
Credit cost to be higher by 40-50% of annual run-rate

Business volume in April to be 'zero'
May will be at 20%
June will be at 50%
Normalcy by September

Harsher view on opex; will take additional 15-20% cut
Credit cost to be 80-90% higher on full year basis
RBI will have to provide one time restructuring option to the sector