Bajaj Finserv’s consolidated net profit fell nearly 77 per cent in the fourth quarter of 2019-20 due to Covid-19 related provisions and MTM adjustments.
Its net profit stood at ₹194.43 crore for the quarter ended March 31, 2020 as against ₹838.74 crore a year ago.
BFS is the holding company for the various financial services businesses under the Bajaj group.
“The MTM adjustment and the contingency provision, together considered as the Covid-19 impact, after adjusting for tax and the company’s interest in those subsidiaries, have impacted consolidated profit after tax of BFS for fourth quarter and 2019-20 by ₹ 807 crore,” it said in a statement on Thursday.
It made a ₹900-crore pre-tax Covid related provision.
In 2019-20, its consolidated net profit stood at ₹3,369.13 crore, which is 4.6 per cent higher than its net profit of ₹3,219.04 crore in 2018-19.
“Bajaj Finserv Limited has recorded its sixth successive highest annual profit after tax on a consolidated basis,” it said.
For the quarter ended March 31, 2020, its total income grew to ₹13,294.25 crore versus ₹12,994.52 crore a year ago.
Meanwhile, its subsidiary Bajaj Allianz General Insurance’s net profit surged to ₹304 crore in the fourth quarter of the fiscal compared to ₹83 crore a year ago. “This was mainly on account of higher underwriting profits,” BFS said.
However, in the case of Bajaj Alianz Life Insurance, shareholders’ profit after tax dropped to ₹38 crore in the fourth quarter last fiscal compared to ₹112 crore a year ago. BFS attributed to lower policyholders’ surplus arising from higher group claims and lower investment income.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.