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Buoyed by robust performance of its NBFC and general insurance subsidiaries, Bajaj Finserv logged a 13 per cent increase in second quarter consolidated net profit at ₹652 crore against ₹576 crore in the year-ago period.
Bajaj Finserv (BFS) is the holding company for the various financial services businesses under the Bajaj Group. The company has 55.13 per cent stake in Bajaj Finance (BFL) and 74 per cent stake each in Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).
The consolidated revenue of BFS in the reporting quarter was up 28 per cent year-on-year (y-o-y) at ₹7,561 crore.
A break-up of BFS’ consolidated profit components shows that BFL’s contribution to the bottomline was 49 per cent followed by BAGIC (29 per cent) and BALIC (21 per cent).
S Sreenivasan, CFO, Bajaj Finserv, said: “From the growth perspective we had all three engines (Bajaj Finance, Bajaj Allianz General Insurance, and Bajaj Allianz Life Insurance) firing very well in this quarter.
“Generally, the macro environment is favouring financial savings now much more than before. There is a lot of liquidity in the system… And if growth revives in India back to 7-8 per cent, then clearly we are on a strong wicket for quite a long time.”
Bajaj FinanceBFL reported a 36.5 per cent jump in second quarter standalone net profit to ₹557 crore from ₹408 crore in the year-ago period.
Revenue from operations was up 32 per cent to ₹3,086 crore, and other income jumped to ₹16 crore.
Finance cost rose 20 per cent to ₹1,144 crore, and other expenses 42 per cent to ₹515 crore.
Loan losses and provisions were up 38 per cent to ₹228 crore.
Rajeev Jain, Managing Director, BFL, said: “Growth has been reasonably secular in the second quarter — the consumer lending business grew 42 per cent, SME 18 per cent, commercial 57 per cent and the rural segment 137 per cent.
“We are fundamentally running the business guided by data. If the data tells us some of the business lines are not doing well, we pull back and find another way to grow.”
Jain said he expects to end FY18 with AUM of ₹78,000-80,000 crore.
Insurance businessesBAGIC reported 11 per cent increase in net profit to ₹260 crore in the second quarter from ₹234 crore in the year-ago period. Gross written premium was up 31 per cent y-o-y to ₹2,857 crore. Net earned premium grew 28 per cent to ₹1,589 crore.
BALIC reported 8 per cent decline in net profit to ₹186 crore (₹202 crore in the year-ago period). New business premium jumped 59 per cent to ₹1,271 crore, and renewal premium rose 15 per cent to ₹745 crore.
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