Money & Banking

Bajaj Finserv Q4 net plummets 77%

Our Bureau Mumbai | Updated on May 21, 2020 Published 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

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.