Buoyed by strong growth in corporate lending business and investment activities, Anil Ambani-promoted financial services company Reliance Capital on Friday reported a 33.5% (Y-o-Y) rise in its net profit to Rs 578 crore for the quarter ended March 31, 2016.
A fall in profit in asset management business and flat growth in commercial and home finance business, however, limited profitability. For the full financial year, the company reported a 34.4% (Y-o-Y) growth in net profit to Rs 1,353 crore on the back of a 12.3% (Y-oY) growth in the top line.
When it comes to the performance of its subsidiaries, disbursements by Reliance Commercial Finance for the full year grew 17% to Rs 8,138 crore, while the same by Reliance Home Finance grew by 14% to Rs 3,922 crore. The average asset under management (AAUM) of Reliance Mutual Fund in Q4FY16 was Rs 1,58,408 crore.
The company said while the profitability of its life insurance business was affected by a one-time exceptional increase in reserves, its general insurance arm saw its profit growing by 22% (Y-o-Y) to Rs 99 crore.
The other highlights of the quarter was Nippon Life Insurance picking up an additional 23% stake in Reliance Life Insurance for Rs 2,265 crore and an additional 14% stake in Reliance Capital Asset Management for Rs 1,200 crore.
