Bajaj Finserv profit rises 41% in Q3

Bajaj Finserv, the holding company for the financial services businesses of the Bajaj group, grew its consolidated net profit 41 per cent year-on-year to ₹614 crore in the December quarter of FY17 (₹437 crore in Q3 FY16), thanks to strong performance by its general insurance and NBFC subsidiaries.

Bajaj Finserv holds 58 per cent in Bajaj Finance and 74 per cent each in Bajaj Allianz General Insurance) and Bajaj Allianz Life Insurance.

Bajaj Finance booked a net profit of ₹556 crore, a 36 per cent increase over the year-ago quarter while Bajaj Allianz General Insurance’s net rose 190 per cent to ₹197 crore. The life insurance business’ net profit, however, was flat at ₹192 crore, growing just ₹1 crore over that of the year-ago period.

Assets under management stood at ₹57,605 crore, a 33 per cent growth y-o-y while net NPA (bad loans) were 0.39 per cent. Capital adequacy ratio was 21.26 per cent as against the minimum regulatory requirement of 15 per cent.

The general insurance business saw gross written premium in Q3 FY17 increase 28 per cent y-o-y to ₹1,722 crore while the claims ratio stood at 70.8 per cent (77.3 per cent in Q3 FY16). Solvency ratio was 258 per cent, much above the regulatory requirement of 150 per cent.

For the life insurance business, gross written premium stood at ₹1,485 crore, a rise of 21 per cent. This was primarily contributed by a 45 per cent y-o-y increase in new business premium in the life insurance business to ₹782 crore.

Solvency ratio stood at a healthy 771 per cent during Q3 as against the minimum regulatory requirement of 150 per cent. Total investments stood at ₹46,806 crore, an 8 per cent increase y-o-y.

During the quarter, Bajaj Finserv converted 92.5 lakh warrants into equity shares of Bajaj Finance at an exercise price of ₹441.2 per warrant and thus increased its holding in Bajaj Finance from 57.28 per cent to 58 per cent.

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