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Bajaj Finserv (BFS) reported a 22 per cent decline in consolidated net profit at ₹708 crore in the January-March quarter, against ₹913 crore in the year-ago quarter.
The profit numbers of the holding company, representing Bajaj Group’s interests in the financial services space, were impacted due to a decline in the bottomline of subsidiary Bajaj Allianz Life Insurance Company.
BFS participates in the insurance business through 74 per cent holding each in its life insurance and general insurance businesses. It has a 61.54 per cent holding in Bajaj Finance (BFL) as well.
In the full financial year, BFS reported a marginal dip in net profit at ₹1,544 crore against ₹1,574 crore in FY2013.
The Board of Directors recommended a dividend of ₹1.75 a share or 35 per cent (against 30 per cent in the previous year).
Shares of BFS ended at ₹837.15, down 1.34 per cent over the previous close on the BSE.
Bajaj Finance results In the reporting quarter, BFL reported an 11 per cent increase in net profit at ₹182 crore against ₹164 crore in the year-ago quarter.
BFL has four lines of businesses – consumer lending, small business lending, commercial lending, and rural.
Net interest income (the difference between interest earned and expended) was up 25 per cent to ₹645 crore (₹515 crore in the January-March 2013 period). Loan losses and provisions rose 38 per cent to ₹62 crore (₹45 crore). Loan disbursements were lower at ₹7,042 crore in the January-March quarter against ₹7,532 crore in the October-December quarter. Assets under management nudged up 7 per cent to ₹24,061 crore against ₹22,461 crore in the October-December quarter.
As at March-end 2014, the non-banking finance company’s capital adequacy ratio stood at 19.1 per cent against 22 per cent as at March-end 2013. In the full financial year, BFL reported a 22 per cent increase in net profit at ₹719 crore against ₹591 crore in FY2013. The board of directors of the company recommended a dividend of ₹16 a share.
Shares of BFL ended at ₹1,808.20, down 3.54 per cent over the previous close, on the BSE. In the reporting quarter, the general insurance arm reported a 63 per cent jump in net profit at ₹101 crore against ₹62 crore in the year-ago period.
The life insurance arm reported a 33 per cent dip in “total shareholders” profit” at ₹688 crore (₹1,023 crore).
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