Money & Banking

Bajaj Finserv Q4 net plummets 77%

Our Bureau Mumbai | Updated on May 21, 2020

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.

Published on May 21, 2020

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