Money & Banking

Bajaj Finserv Q1 net profit down 31.5%

Our Bureau Mumbai | Updated on July 21, 2021

Consolidated total income declined by 1.7 per cent to ₹13,949 crore in the first quarter

Bajaj Finserv reported a 31.5 per cent drop in its consolidated net profit to ₹832.77 crore for the quarter-ended June 30, 2021 as against ₹1,215.15 crore in the same period a year ago.

Its consolidated total income declined by 1.7 per cent to ₹13,949 crore in the first quarter of the fiscal as against ₹14,192 crore a year ago.

“After a brief recovery in the fourth quarter of 2020-21, economic conditions worsened in the first quarter of 2021-22 as the second wave of Covid spread across the country accompanied by localised lockdowns in many States. Sales of consumer durables and motor vehicles were affected in many States and, consequently, risk levels remained elevated in the quarter,” Bajaj Finserv said in a statement on Wednesday.

Insurance business

The life insurance business, in particular, recorded strong growth in the first quarter this fiscal, well above the industry growth, it further said.

Bajaj Allianz Life Insurance reported a 35.4 per cent drop in the shareholders’ net profit to ₹84 crore in the quarter-ended June 30, 2021 as against ₹130 crore a year ago. The decline in profit was mainly due to Covid-19 claims.

Gross written premium increased by 48 per cent to ₹2,516 crore in the first quarter this fiscal versus ₹1,700 crore in the same period last fiscal.

It reported a solvency ratio of 648 per cent as on June 30, 2021.

Bajaj Allianz General Insurance saw its net profit fall by 8.4 per cent to ₹362 crore in Q1FY22 as against ₹395 crore in the corresponding period of last fiscal.

Gross written premium for the first quarter increased by nine per cent to ₹2,494 crore versus ₹2,289 crore in the first quarter of 2020-21.

The insurer did not write any crop insurance business during the quarter. Its combined ratio stood at 103.4 per cent as on June 30, 2021.

Bajaj Finance reported a four per cent year on year growth in its consolidated net profit to Rs 1,002 crore in the first quarter this fiscal.

In a separate stock exchange filing, Bajaj Finserv said its board of directors has approved an investment of Rs 342 crore in its wholly owned subsidiary Bajaj Finserv Direct, which is into distribution of financial products through digital marketplace.

Published on July 21, 2021

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