Bajaj Finserv Ltd.'s profit rose 22.9% year-on-year to Rs 2,758 crore in the September quarter, driven by higher earnings at its lending subsidiary Bajaj Finance and improved profitability at Bajaj Life Insurance. Consolidated total income increased 16.7% to Rs 43,416 crore from Rs 37,215 crore in the corresponding quarter last year, the company said in a notification to the exchanges on Tuesday.
Bajaj Finance remained the largest contributor to earnings among the group's financial services businesses, with its quarterly profit rising 29%. Bajaj Life Insurance also reported higher profitability, while Bajaj General Insurance posted a decline in profit.
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Bajaj Finserv (Q2, Consolidated YoY)
- Profit up 22.9% to Rs 2,758 crore versus Rs 2,244 crore.
- Total income up 16.7% to Rs 43,416 crore versus Rs 37,215 crore.
What Aided Earnings
Bajaj Finance reported a 29% year-on-year increase in consolidated profit after tax to Rs 6,367 crore. Net total income rose 23% to Rs 15,974 crore, while assets under management increased 26% to Rs 5.85 lakh crore as of September, Bajaj Finserv said in a statement.
The lender added 4.42 million customers during the quarter and booked 13.45 million new loans. Asset quality also improved, with its gross non-performing asset ratio declining to 1.06% from 1.24% a year earlier. The net non-performing asset ratio fell to 0.42% from 0.60%.
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Bajaj Housing Finance, the group's mortgage subsidiary, reported an 18% increase in profit to Rs 757 crore.
Bajaj Life Insurance also recorded higher earnings during the quarter. Its net value of new business, which measures the profitability of new policies, increased 40% to Rs 512 crore from Rs 367 crore.
New business premium rose 29% to Rs 5,170 crore, while the gross written premium increased 23% to Rs 10,276 crore. The insurer's profit after tax climbed to Rs 55 crore from Rs 13 crore in the year-ago quarter.
Insurance Performance
Bajaj General Insurance reported a 10% year-on-year increase in gross written premium to Rs 7,056 crore. Excluding tender-driven crop and government health businesses, premium growth stood at 21%.
However, the insurer's profit after tax declined to Rs 420 crore from Rs 517 crore. Its underwriting loss widened to Rs 115 crore from Rs 92 crore a year earlier.
The combined ratio, which measures claims and expenses against premiums, increased to 104.5% from 102.3%. Excluding the impact of natural catastrophes, the ratio stood at 102%.
The contrasting performances of the two insurance businesses reflected their differing contributions to the group's earnings. Higher new business profitability at Bajaj Life supported the overall performance, while lower profit at Bajaj General weighed on the insurance segment.
Bajaj Finserv's emerging businesses reported a combined loss of Rs 144 crore. These businesses include Bajaj Finserv Health, Bajaj Finserv Direct, Bajaj Asset Management and Bajaj Alternate Investment Management.
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